Capitol gains tax

Guest (Querist) 03 March 2012 This query is : Resolved
To
Shri A V Vishal

Thank you so much for a detailed reply !

Mine are ancestral agricultural small pieces of land(which now fall in residential category because of also being used for making houses)

These lands are being sold separately at different intervals for small amounts.1st one being 30th Dec 2010.I received the amount in May 2011(Sent by the person who's got power of attorney)

1.Do I have time to invest the amount till Dec 2012 ?
2.Do I have to show the amount in this year's Returns ?

Thank you !

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Raj Kumar Makkad (Expert) 03 March 2012
There is no liability to re-invest and the amount of sale should be duly shown in return but no tax liability is liable to be imposed being an agricultural land.

A V Vishal (Expert) 03 March 2012
Mr Pramod, Please check your inbox for my message

A V Vishal (Expert) 03 March 2012
Mr Makkad saab, please go through the query properly........

C. P. CHUGH (Expert) 04 March 2012
As You stated in your querry that land now falls in Residential sector meaning thereby that the land in question is now within municipl limit of a notified area. You have not mentioned the location of land and hence it is presumed to be in a notified area (Pls check the area is notified or nor). Any capital gains arising out of sale of urban lan situated within the specified limit of a municipal area of a notified city has to be taxed according to law. You have the following option of avoiding it.
1. Invest the whole of sale proceed in an residential property before filling of return.
2. Deposit the amount of realisation in a Capital Gains Deposit Scheme within six month of registration of sale deed,to be utilised for the purposes of acquiting of Residential property lateron bu twith in two years or constructing a residential property within three years.
3. Deposit the sale consideration in Infrastructure Bonds (upto 50 Lacs per FY) within six month
4. Pay Tax on LTCG calculated as per provisions of Law.

Thanks

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