Any Income derived from a Capital asset movable or immovable is taxable under the head Capital Gains under Income Tax Act 1961. The Capital Gains have been divided in two parts under Income Tax Act 1961. One is short term capital gain and other is long term capital gain.

 Article explains Taxability of short term capital gains, Capital gains in case of depreciable assets, Capital Gain Where some assets are left in block of assets, Capital Gain When no assets are left in block of assets, Short term capital gain where land & building are sold together, Capital Gain when Capital asset transferred by the partner to the partnership firm, Capital gain in case of Dissolution of a Firm, Calculation of Capital gain from Plot and building , Taxation of Long term capital gains, Section 50C and Section wise Table on Exemptions from long term capital gain.

Capital Gains

1. Short Term Capital Gains :

If any taxpayer has sold a Capital asset within 24 months and Shares or securities within 12 months of its purchase then the gain arising out of its sales after deducting therefrom the expenses of sale(Commission etc) and the cost of acquisition and improvement is treated as short term capital gain and is included in the income of the taxpayer.

The deduction u/s 80C to 80U can be taken from the income from short term capital gain apart from the short term capital gain u/s111A

i. Taxability of short term capital gains:

Section 111A of the Income tax Act provides that those equity shares or equity oriented funds which have been sold in a stock exchange and securities transaction tax is chargeable on such transaction of sale then the short term capital gain arising from such transaction will be chargeable to tax @15% from assessment year 2009-10 onwards.

The short term capital gains other than those u/s 111A shall be added to the income of the assessee and no such benefit is available on short term capital gains arising in other cases and they will be taxed normally at slab rates applicable to the assessee.

If an assessee does the business of selling and purchasing shares he cannot take advantage of section 111A or section 10(38). In this case income will be treated as business income.

ii. Capital gains in case of depreciable assets :

According to section 50 of Income tax act if an assessee has sold a capital asset forming part of block of assets (building, machinery etc) on which the depreciation has been allowed under Income Tax Act, the income arising from such capital asset is treated as short term capital gain.

iii. Where some assets are left in block of assets:

If a part of such capital asset forming part of a block of asset has been sold and after deducting the net consideration received from sale of such asset from the written down value of the block of such asset the written down value comes to NIL then the gain arising shall be treated as short term capital gain and in such case where written down value has become NIL no depreciation shall be available on such block of asset even if some assets are physically left in the block of assets.

iv. When no assets are left in block of assets:

If the whole of the capital assets forming part of a block of assets have been sold during a year and the assessee has suffered a loss after deducting the net sale consideration from the written down value of the block of assets then such loss shall be treated as short term capital loss and no depreciation shall be allowed from such block of assets.

It was decided by Chandigarh tribunal in (2004) 3 S.O.T. 521/ 83 T.T.J. 1057 if the whole of capital assets in a block have been sold in a year and some gain arises after the sale such gain shall not be treated as short term capital gain if some new asset has been purchased within the same year in the same block of assets and the total value of new and old capital assets in the same block is more than the sale consideration of the assets sold, since the block of asset does not cease to exist in such case as is required u/s 50(2). This can be explained with an example as below:

Written down value of 5 Machinery as on 01-04-2020 –  Rs. 500000

5 machinery sold on 01-05-2020 –  Rs. 600000

New Machinery purchased on 01-06-2020 – Rs. 250000

now in above cases the difference between the w.d.v and sale value i.e Rs 100000 can not be treated as short term capital gain in the year 2020-21 since new machinery has been purchased in the same block of asset afterwards in the same year and the total of new and old machinery is more than the sale value of the machineries sold as a result the block of asset continue to exist.

v. Short term capital gain where land & building are sold together:

Some times it happens that in a block of assets namely land & building, the whole of land & building is sold together. In such cases the capital gain on land and building should be calculated separately.

The Supreme Court has held in (1967) 65ITR 377 that depreciation is available on the value of building and not on the value of plot. Considering the above decision of Supreme Court, the Rajasthan High court in (1993)201 ITR 442 has held that Plot and building are different assets. If the assessee has purchased plot more than 2 years back and constructed building on it less than 2 years back then the gain arising on sale of plot shall be long term capital gain and the benefit of indexation shall be given on it whereas the gain arising on sale of building shall be short term capital gain and will be added to the income of the assessee. Therefore, both should be calculated separately.

Where the plot has been purchased more than three years back and the building has been constructed on it less than 2 years back, it is advisable that in the sale deed the sale value of plot and building should be shown separately for more clarity and if the consolidated sale value of the Plot and building has been written in the sale deed then the valuation of plot and building should be done separately from a registered valuer.

vi. Capital asset transferred by the partner to the partnership firm:

As per section 45(3) of the Income Tax Act 1961 if any partner in a firm transfers his asset to the firm then the capital gain on such asset as arising to the partner shall be calculated by presuming the sale value of such asset as is shown in the books of accounts of the firm and not the market value of the asset.

whether such gain is treated as long term or short term will be decided as below:

a) If the depreciation has been claimed on the asset transferred to the firm then in view of section 50(2) the gain arising there from will be treated as short term capital gain.

b) If the partner has been the owner of the asset for more than 24 months and no depreciation has been claimed on it then the gain arising from such asset shall be treated as long term capital gain.

vii. Capital gain in case of Dissolution of a Firm:

As per section 45(4) of the Income Tax Act where any partnership firm or AOP or BOI is dissolved and the Capital assets of the such firm or AOP or BOI are transferred by way of distribution of assets to the partners at the time of Dissolution in such case the gain arising from such transfer to the partners will be treated as capital gain and the firm will be liable for paying tax on it in the year of distribution of the assets.

For the purpose of section 48 the fair market value of the asset on the date of such transfer shall be deemed to be the full value of the consideration received or accruing as a result of the transfer.

2. Long Term Capital Gain:

A Capital Asset held for more than 24 months and 12 months in case of shares or securities is a long term capital asset and the gain arising therefrom is a long term capital gain. Long term capital gains are arrived at after deducting from the net sale consideration of the long term capital asset the indexed cost of acquisition and the indexed cost of improvement
of the asset.

The Central govt notifies cost inflation index for every year. The indexed cost of acquisition is calculated by multiplying the actual cost of acquisition with C.I.I of the year in which the capital asset is sold and divided by C.I.I of the year of purchase of capital asset. Similarly the indexed cost of improvement can be calculated by using the C.I.I of the year in which the capital asset is improved. Where the capital asset was acquired before the year 2001 then the cost of acquisition shall be the fair market value or the actual cost of its acquisition which ever is higher. The Fair market value of a capital asset can be known by the valuation of the registered valuer.

i. The cost inflation index table:

Financial year Cost Inflation Index
2001-02 100
2002-03 105
2003-04 109
2004-05 113
2005-06 117
2006-07 122
2007-08 129
2008-09 137
2009-10 148
2010-11 167
2011-12 184
2012-13 200
2013-14 220
2014-15 240
2015-16 254
2016-17 264
2017-18 272
2018-19 280
2019-20 289
2020-21 301

If a capital asset has been subjected to depreciation then no indexation benefit is allowed on sale of such capital asset in view of section 50(2) as discussed above.

ii. Capital gain from Plot and building should be separately calculated:

As discussed above plot and building are separate assets and the capital gain on above should be calculated separately. If the plot is purchased more than 2 years back and building has been constructed within 2 years the capital gain on plot will be considered as long term and the capital gain on building will be treated as short term capital gain.

iii. Taxation of Long term capital gains:

The long term capital gains are taxed @ 20% after the benefit of indexation as discussed above. No deduction is allowed from the long term capital gains from section 80C to 80U. But in case of individual and HUF where the income is below the basic exempted limit the shortage in basic exemption limit is adjusted against the long term capital gains.

Section 112(1) provides that any capital gain arising from a long term capital asset being the listed securities which are sold outside the stock exchange the long term capital gain shall be calculated on such securities as below:

a) Tax arrived at @ 20% on such long term capital gain after indexation u/s 48 or

b) Tax arrived at @ 10 % on such long term capital gain without indexation

Whichever is less.

The long term capital gain on equity shares or units of equity oriented mutual fund which are sold in the stock exchange and on which securities transaction tax is paid, is exempt u/s 10(38).

iv. Section 50C:

The provisions of Section 50C of the Act states that where the consideration received or accruing as a result of  transfer by an assessee of a capital asset, being land or building or both, is less than the stamp duty value for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer.

From the above, it is apparent that the provisions of Sec. 50C of the Act will get attracted where a capital asset, being land or building or both is transferred for a consideration, which is less than the stamp duty value. Thus, the basic condition for invoking the provisions of Section 50C of the Act is that the asset transferred should be a capital asset as per Section 2(14) of the Act.

Thus, a rural agricultural land, not being a capital asset u/s. 2(14) of the Act is beyond the ambit of Section 50C of the Income Tax Act, 1961 and any transfer of a rural agricultural land for a consideration, which is less than the stamp duty value is out of purview of Section 50C.

v. Section wise Table on Exemptions from long term capital gain:

Section
Asset
Assessee
Holding Period of Original Assets
Whether Re-investment Necessary —Time Limit
Other Conditions / Incidents
Quantum
54
Residential House Property
Individual HUF
2 years
Yes — In Residential House, within 1 year before, or 2 years after the date of transfer (if purchased) or 3 years after the date of transfer (if constructed). **
Where capital gain does not exceed Rs 2 crore, the assessee has the option to purchase/ construct two houses. This option is available once in a lifetime of assessee.
The amount of gains, or the cost of new asset, whichever is lower
54B
Agricultural Land
Individual & HUF
Use for 2 years
Yes — In Agricultural Land, within 2 years after the date of transfer.
Assessee or his parents or HUF must have used the land for agricultural purpose for preceding two years
As above
54D
Industrial Land or Building or any
right
therein
Any Assessee
Use for 2 years
Yes — In Industrial Land, Building, or any right therein within 3 years after the date of transfer.
Must have been compulsorily acquired and used for business of Industrial undertaking for preceding 2 years
As above
54EC
Land or Building or both (w.e.f. 2019-20)
Any Assessee
2 Years
Yes — Investment of whole or any part of capital gain in ‘specified assets’. (Refer Note 1)
Investment should be made within 6 months from the date of transfer
Lower of the Capital Gain or the actual amount invested in specified assets.
However the aggregate investment made by assessee in the specified asset, during the financial year in which the original asset/ assets are transferred and in the subsequent financial year should not exceed 50,00,000/-
54EE
Any Long Term Capital Asset
Any Assessee
1 year for listed shares, Listed Securities, Units of UTI/ Mutual Fund specified u/s 10(23D), Zero coupon bonds, 2 years for unlisted shares and land and building, 3 years for other capital assets
Yes — Investment of whole or any part of capital gain in ‘long term specified assets’ as stipulated in the section. Investment should be made within 6 months from the date of transfer. (Note 2)
Investment made by an assessee in the long term specified asset, from capital gains arising from the transfer of one or more original assets. During the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed Rs 50,00,000/-
54F
Any Capital Asset (not being a residential house)
Individual HUF
1 year for listed shares, listed securities, unit of UTI/ Mutual Fund specified u/s 10(23D), Zero-coupon bonds, 2 years for unlisted shares and any immovable property other than residential house, 3 years for other capital assets
Purchase of one Residential House in India within 2 years after or 1 year prior to date of transfer or construction of one residential house in India within 3 years from date of transfer
If cost of new asset is more than the net consideration of original asset, the whole of the gains is exempt. If cost of specified asset is less than net consideration, proportionate amount of the gains will be exempt i.e. Capital Gain * Cost of new Asset / Net Consideration on sale of asset.
54G
Land or Building or any right therein or Plant or Machinery in Urban Area used for the business
Industrial undertakings in urban area shifting to an area other than urban area
No Period specified
Acquire similar assets and incur expenses on shifting original asset, within 1 year before or 3 years from the date of transfer
The amount of gains, or the aggregate cost of new asset and shifting expenses, whichever is lower.
54GA
Land or Building or any right therein or Plant or Machinery in Urban Area used for the business
Industrial undertakings in urban area shifting to any Special Economic Zone
No period specified
Acquire similar assets and incur expenses on shifting original asset, within 1 year before, or 3 years from the date of transfer
The amount of gains, or the aggregate cost of new asset and shifting expenses, whichever is lower
54GB
Long Term Capital asset being a residential property (a house or a plot of land)
Individual & HUF
2 years
a. Subscribe to equity shares of an eligible company before due date of return filing
b. The company within 1 year of subscription should utilize the amount for purchase of new asset
If cost of new asset is more than the net consideration of original asset, the whole of the gains is exempt. If cost of specified asset is less than net consideration, proportionate amount of the gains will be exempt i.e. Capital Gains * Cost of New Asset/ Net Consideration on sale of asset.

Note:

1. “specified asset” for making any investment under this section,—

(i)  on or after the 1st day of April, 2007 but before the 1st day of April, 2018, means any bond, redeemable after three years and issued on or after the 1st day of April, 2007 but before the 1st day of April, 2018;

(ii)  on or after the 1st day of April, 2018, means any bond, redeemable after five years and issued on or after the 1st day of April, 2018,

by the National Highways Authority of India constituted under section 3 of the National Highways Authority of India Act, 1988 (68 of 1988) or by the Rural Electrification Corporation Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956) or any other bond notified in the Official Gazette by the Central Government in this behalf.

2. Long term specified asset means unit or units issued before 01/04/2019 of fund notified by Central Government in this behalf.

(Author – Amit Bajaj Advocate, Bajaj & Bajaj Advocates, 128, Sangam complex, Milap chowk, Jalandhar City (Punjab), Email: amit@amitbajajadvocate.com, M +919815243335)

Read Other Articles from Advocate Amit Bajaj

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

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144 Comments

  1. Amitabh Roy says:

    We are a partnership firm running a rice mill, we want to sale the land, building and plant and machinery. We want to know how the capital gain tax will be calculated on the three items ie land , building and machinery and what amount will be taxable in the hands of the partners.. Kindly guide us

  2. PRABHAT says:

    sir,
    recently my mother died intestate who was holding a flat in her name which was transferred in her name by mutual consent of us two brothers 7 years back. No i wish to purchase the inherited share of my brother.
    Can i seel my investment in another property- and pay to my brother and not come under LTCG as i have invested in another property?
    Also if the sell-to -be property is just transferred by builder in another name ( and i do not take possession of it) will the same be different?
    Request some guidance as none has been able to do so…

  3. Pramod Jhawar says:

    We are three partners in a firm which develops colony. After 2-3 years of operation all the 3 partners have distributed the unsold plots in profit sharing ration at cost price (although stamp duty was paid @ of market price). Firm is still not dissolved as there remains some undiverted agriculture land in stock. What will be the firms liability of income tax in this case?
    Pls do me a favour by guiding in the matter.

  4. Sarvan says:

    Sir, Please tell me the agricultural land belongs to public limited company for more than 3 years, but on this date the company is closed due to heavy loss, and the lands are being sold by piece meal base to individuals for residential house. Kindly give me suggestions that the profit arrives from selling the land comes under long term or short term capital gains, and at the same time the company accrued a great loss by selling the plant and machinery and it is also having a high statutory dues, whether this profit can be adjusted against the loss and dues.

    Thanking you
    yours sincerally

  5. k babu says:

    The assessee has claimed the long term capital loss on account of investments written off during this AY. these investments were made by the company during PY for development of manufacture of components in India. due to recession and cost advantages over other international players, these companies are unable to generate income. these amounts were written off on account of liquidation of these companies by the orders of Honorble High Court. these companies are having no assets to distribute to the shareholders. the investment loss is not included in the business loss. now the assessee has written off this loss after claimingindexation. Is indexation allowable are the book value should be adopted for write off as per IT act.

  6. V.H.Giri says:

    An Asset is purchased on 25 June’1985 for Rs.72,500 and is sold for Rs.284,000 during the previous year. Calculate capital gain if cost inflation index for 1985-86 is 133.

  7. parinita jha says:

    sir,
    i have purchased L&NT share in the year 1995 of about 100 share of rs 10000 and i have sale the same 300 share including given dividend on dated 07/07/2014 through demat account of axis bank and i have got total 502500 in my saving account .
    so i want to know that is this 502500 is taxable ? according to my income.
    mo-09471000657.

  8. Vinod says:

    I was a non resident Indian for 6 years when I bought some debt and equity mutual funds in that country.  I am now a resident. I am told that long term capital gains from sale of equity mutual funds held abroad are not tax free as in the case of equity mutual funds held in India but that LTCG from sale of equity as well as debt funds can off set against long term capital losses if I have any. I do not have any long term capital losses.

    My question is whether I can apply cost indexation to the sale of equity and debt mutual funds held outside India.

    Vinod

  9. Daxesh Thakkar says:

    I have sold non agriculture land which was purchased by registered agreement on 2002, however sales deed executed on 2008 and it is sold on 2011. i have made land develop expenses during the period 2002 to 2008, my question is that land sold is covered under long term capital gain and or short term capital gain and claimed expenses incurred for land development and tenant vacating as cost improvement.

    Please give suggestion with detail with case laws.

  10. sunil says:

    dear sirs, have sold a residential property for 70,00,000 (held since 2008 – sold in fy 2013-14). the cost of acquisition (including improvements and registration fees etc was 23,03,902). I have bought another residential flat for 60,00,000 during fy 2013-14. 1% tax was deposited as tds by the purchaser of my property and myself as buyer. can someone advice how should this be filled in ITR 2 so that I may fill the form correctly and (obviously) minimize the tax outflow. am a retired person only a pension to go by.
    I close with profuse thanks in advance. sincerely, sunil

  11. H.S.BHATIA says:

    MY QUERRY IS SAME AS THAT OF “NILESH”S.DATED 1.7.2011 AT 9.32 AM .ESPECIALLY THE CLARIFICATION PART MENTIONED THERE.PLEASE ALSO LET ME KNOW IF CAPITAL GAIN TAX CAN BE SAVED BY PURCHASING ONLY A PLOT AND NOT A HOUSE AFTER SELLING A HOUSE

    I WILL BE VERY GRATEFULL.

  12. Vinod Rana Ca says:

    If Motor Car Purchase in Partnership Firm all payment made by Firm, but Car RTO Registration in name of Partner – applicable Section 45(3) in The Income- Tax Act, 1995

  13. vikesh Agrawal says:

    can A partner Whose have long term Capital gain, Purchases any assets in the name of firm which he is a partner to get exemption .?

  14. S N Das Advocate says:

    I have a query.pl let me know.Two brothers have jointly purchased immovable property.They have paid down payments from their own a/c equally.Loan from bank has also been approved in their joint names.EMI s will also be paid equally by both of them.Now let me know who will deduct TDS u/s 194IA and who will include income u/s 56(2).Also let me know does IT dept will treat the transaction as one by AOP,although there is no express indication in any document by both of the above assessees.

  15. Ram Seshan says:

    My query is, I have LTCG from equity shares all listed in the stock exchange, STT paid on all transactions. While section 112(1) provides for total exemption of tax US(10)38 on such LTCG, I do not find exclusive columns in IT returns form ITR-4. This seems clubbed with LTCG from all classes of assets, which is confusing. Shall appreciate if you will clarify if I should report under Schedule CG section B4 (a to e); B7, C, D1.

  16. Arjun says:

    Dear Sir,

    My father has sold out home and amount is received is liable for LTCG now we are planing to buy another home so can we purchase it on my name and my wife name not having fathers name in purchase home.
    Kindly reply.

    Thanks
    Ajun.

  17. SHAM LA says:

    Dear Sir,
    I have purchased a flat for Rs.30L, after selling the plot for Rs.25L in May 2010 after availing the LTCG tax banefits. The plot sold in 2010 was purchased in 2002 for Rs. 3L.
    I have made the full and final payment of above said flat in May 2010 but not sale deed has been made till date. I am having only the allotment from Builder. Now I am planning to sell the said flat, please confirm if the sale deed is must before selling or I can sell the same on Allotment basis. And what will be tax liabilities on me. The sale price now will be about Rs.40L.

  18. Joe says:

    if i gift an office premises to my son
    1. whether he has to pay stamp duty? if yes, how to calculate?
    2 how to get it transfrd to his name?
    3 can society take any objection?
    4 can society ask for any charges?
    5 what are tax implication? to me? to my son?
    6 what is the procedure to complete the transaction?
    7 any need to give advt on paper?
    8 what r tax implication if my son sells the property at a later date?

  19. Manan Shah says:

    I had purchased property on 17th April 2008 for 53,50,000/- with home loan of Rs.30,00,000/-, in joint names of my & my brother,

    We repaid full home loan in February 2013, & also will be selling the flat in March 2013 for 1,50,00,000/-

    What will be capital gain tax,

    The amount paid as interest on home loan will it be calculated in my income & not allowed as deductions for capital gain tax ?

    Please reply as soon as possible & help us in understanding the tax liability ,

    Regards

  20. anamika says:

    hi sir i have an ancestral property since 1935 we didn’t have any devidation in family still today even two generation has dead now we dispose off and consideration received has been distributed among all 15 members now like to ask you is it taxable for us or not? if yes then how we calculate capital gain?

  21. Ankit J Shah says:

    How taxation law shall be applied in case of LTCG tax when two properties were sold by individual and one property will be purchased in joint deed by that individuals?

    Please guide.

  22. Dhaval says:

    Dear All,

    There is a land on which a some grass and flowers are attached and small hunt also attached with it. is Flowers and hunts also termed as capital Gain? Give the Answer it should be appreciable…..

  23. Subhash K. says:

    Depreciated asset like office premises if sold after 3 years what will be tax implications. Whether LTG is applicable or sale value of depreciated assets will attract I.Tax @ 10% , 20% or 30%. To avoid tax sale value should be invested in which bonds?

  24. Hardik K Sanghani says:

    Hi,

    I have purchased a flat in Dec 2010 @ Rs 18,000,00 & sold it in Jul 2012 @ Rs 25,000,00.i.e short term capital gain of Rs 7,000,00.

    What is the timeframe in which I should by a new flat to avoid income tax ?

    What is the timeframe to invest in CGDAS & how should i go about ?

    If I deposit in CGDAS,can I withdraw the amt of 7,000,00 at one shot if I purchase a property in next 3-6 months ??

    Regards,
    Hardik K Sanghani (9833934997)

  25. N M PATEL says:

    if my value of holding is more than 8 lac in my demat account at any point of time then its taxable or not.what should i do to save tax.

  26. HASMUKH PATEL says:

    I had purchased residence worth Rs.7 lac, 7 or 8 years back which can
    earn more than 80 lac

    and other

    residence plot which I had purchased on 15.7.10 for Rs.2.25 lac which can
    yield me minimum 12 lac. both in my wife’s name on selling in 15 JULY,13.

    First of all, I have planned to SALE the plot which is in my wife’s
    name, and take a new house worth 27 lacs (15 lac from plot+12 lac new
    investment). Can I purchase that in my, wife or son name and avail the benefit of capital gain tax

    Now I tend to sell these both and purchase land and another house. Can I ?
    How much gain tax will I have to pay?
    Can I invest the return in my or son’s name??

    Moreover I had also booked TWO, 1 BHK, house for Rs.2.75 lacs, total
    5.50 lacs in 2008; but the builder failed to give possession or enter
    into sale deed till date. Now he seems to enter into sale deed on
    payment of my remaining Rs.1.25 lacs in next 2 to 4 months.
    Can I keep the name of my wife in these two 1 BHKs?

    Which date to be taken for long term capital gain tax – booking date
    or the date on which the SALE DEED is done.

    I shall be highly obliged to have your proper guidance.

    Thanks & Regards,

    HASMUKH PATEL

  27. Ashish says:

    I am selling my commercial office space within 15 months of purchase and I want to invest the the capital gain in the Project of Tourist cottages.
    I am building the cottages which will be used purely for the commercial purpose in 2 projects.
    -First Project land is owned by me.
    -Second Project land is taken on long lease by me.
    The land on which I am building the cottages is agriculture land.
    Can I claim the Capital gain investment or capital gain Tax will be applicable ?

  28. K. K.SHARMA says:

    My Father purchased a House property in 1969. He sold this House property in May 2012. can there is a Long Term Capital Gain. Pls. Advise me.

  29. Rajesh Narayanan says:

    We don’t remember nor have records of moneys spent on construction of house during 1989-90. How to calculate for purposes of LTCG? 

  30. Aziz says:

    Dear sir would like to have your opinion on the short term gain >>>>>as i sold my plot which was funded by hdfc for residential site..and have i to include the cost of interest or what are the other expenses can i book for aquisiation of the plot ..since before selling i had drilled a borewell, compund wall and misc expenese were incured kindly guide as to what is the best form and the taxation percentage..do note that the property was in both our names my wife and myself..

  31. neha says:

    I Have invested in mutual fund in sbi magnum Rs 25000 and had claim a deduction u/s 80c after 3 year i have redeemed and I have received 31507 what treatment to be done for this

  32. AVIK BASU says:

    I had obtained some ESOPs from our Company which I had purchased by paying the relevant FBT. Now I have sold the shares after 3 years and made some capital gains from it. The sale proceeds are credited in my salary account(with PAN attached) along with the capital gains. Will the sale proceeds required to be included as taxable income under long term capital gains tax.

  33. Shubham says:

    Assessee  have sold an agriculture land in  at Rs. 1500000. For the purpose of claiming exemption u/s 54b assessee have purchased Agriculture land on the name of his wife but  section 54 b exemption is not available in such  case. Anyone can suggest me that in which manner i can save my capital gain tax.. i m in trouble.. pls help me,,,,,,

    shubham.an.aspirant@gmail.com

  34. janakiraman says:

    I have sold some shares held by me for 6 years.I understand that on LTCG where STT is paid ,such amounts are fully exempt from income tax .My question is whether it is necessary to show such LTCG IN my IT returns.
    Thanking you, Janakiraman

  35. sukhi says:

    whether u/s 111a, short etrm capital gain on sale of mutual funds (growth stt) to nri and amount is Rs 2 Lac and no other income then what will bw the minimum tax. At 15% or with slab rate. Please give remarks.

  36. Thiagu says:

    Our partnership firm was registered in 1972 and a 9 ground plot of land was purchased from SIDCO in Chennai in1972 at a cost Rs.30,928.50, has been shown in our balance sheet since 1972 till date, without any revaluation. Two years back we had entered into a joint development agreement and the Developer has built 6 floors, to be shared equally at 3 floors each. We have given them POA to sell the 50% undivided share of land out of the 9 grounds. They have since registered this undivided share of land to three parties at the guideline value of Rs.1,63,92,376 * 3 = Rs. 4,91,77,128 in the months of Aug, Sep & Nov 2011.

    Please let us know how best to reduce the incidence of Capital gains taxes payable by us.

    Regards,

  37. Jaiswal says:

    In year 2000, I had bought a residential-plot of land in an unauthorized colony in Delhi from the original owner (who got it from the colonizer) for Rs 275000/-. In that year the GPA was possible so I had got one done.
    There is a possibility of getting a price of 20,00,000/- for this plot (It still is an unauthorized colony – implies no registry/GPA).
    Now I have purchased a plot of land separately via Homeloan-for-residential-plot (Rs 17 lacs) in Jan 2011 in an authorized/approved colony in NCR.

    Query1: Will there be a LTCG on this plot? How much would it be?
    Query2: If I sell this plot of land in unauthorized colony for 30lac, can I use the proceeds to partially payoff my existing homeloan (for residential plot) of 17 lacs for the second plot?
    Query3: Also I intend to construct a house on the authorized plot by year 2014 end. Could I use the remaining amount against the same?

  38. shirish vora says:

    I rent residental property in mubai in 2008. Now due to redevelpoment I will own residental
    property (instead of rent). My question how to calculate the cost of property incase if I want to sale.
    Builder will complete construction (may be) in 2014. when can i sale property to consider to pay long term capital gain.

  39. pooja says:

    i have purchased industrial gala iin the year 1985, now i want to sell this gala and out of that amount, i would like to buy a residential flat. Do i need to pay capital gains tax on the sale proceeds of industrial gala….
    Reply ASAP

  40. Vani Gupta says:

    I have an old property that we are now collaborating with a builder to develop. 4 floors will be built and i will retain 3 and the builder will take 1. In lieu of these floors the builder will build the building at his expense and is giving us a sum of money on the execution of the agreement.

    Whether this sum of money will attract a LTCG at the time the 1 property given to the buider are registered?

    This would take about 1.5 years.

    How can i save my capital gain tax & what will be the Cost of Acquisition of that floor which i have to given to Builder?

  41. Ashok Munjial says:

    I had purhased shares during1992 when STT was not applicable. Ihave recently sold few shares,in some shares I earned profit & in few loss. Kindly advice the income tax applicablein this case. Pl. also advice income tax rules where STT has been paid

  42. vivek says:

    sir,

    i have a  commercial property in my  [HUF] firm purchased in 2005 and no other property in this firm. now i want to sale the same. kindly help me in knowing the tax implication on 3 situations :

    1]  I want to buy a bank rented residential property . 

    2] or residential property [vaccant]

    3] or if i buy commercial property.

    If i sale my property this year and i have some capital gain, what is the tax implication .

    kindly revert ASAP

    THANX

  43. Kishor says:

    I have a question regarding LTCG. I have piece of ancesstoral Land on which i constructed apartment and selling it as per bookings. in this i want to know how can i get deduction of land cost from my developing buisness recpt. pls clarify

  44. sam says:

    Sir, iam planning to sell my ancestrial agricularal land, iam a non resident in the uk . i recieved the land as a gift (inhertitance) after my father died 5 years ago. What tax implications are their for me? and what is this 8km municiple ring or boundary should the land fall inside or out? rgards

  45. sandeep ahuja says:

    sir, if a person inherited some property like plot, resident house etc. then on sale of that proprty will that property comes under long term capital gain

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