Tax on land sale

Querist : Anonymous (Querist) 13 May 2011 This query is : Resolved
Sir,
what is tax payable on the amount received after sale of a plot. the owner is Sr citizen.He has got this lansd from his father. Please guide & inform.
Kinds regards.

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R.Ramachandran (Expert) 14 May 2011
From the sale proceeds,the indexed cost of acquisition of the plot would be deducted. The remainder is the Long Term Capital Gains. On that amount of LTCG a tax at the rate of 20% is payable.
However, if the amount of capital gain is invested within 2 years in purchasing another plot, then the tax can be avoided.

A V Vishal (Expert) 14 May 2011
Mr RR,

I think it is not purchase of another plot but Reinvestment in a residential house

MUKESH SHARMA (Expert) 15 May 2011
pls give proper detail of land cost and sales consideration , you're having three years time to invest in section 54 , but keep it in mind if you are not able to invest the LTCG before filing the It return , deposit it in LTCG Bank a/c with any nationalsied bank.

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