Taxation
YAGNESH HASMUKH DAVE
(Querist) 25 January 2014
This query is : Resolved
sir a father has recvd ancestrated agricalture land in share with two others now they have decided to sale the agriculture land my question is:
1) what will be the cost price of land as its ancestrated agr land to be taken for calculation of capital gain tax.
2) can the father invest capital gain money recvd in share for flat or capital gain bond or he have to invest in agr land only to save capital gain tax
3)if the father give the capital gain money recvd in share to his son as gift whether the father has to pay capital gain tax pl explain briefly
ajay sethi
(Expert) 25 January 2014
raise query in CA club india .com
or contact your CA
YAGNESH HASMUKH DAVE
(Querist) 25 January 2014
sir then why taxation subject is here if taxation query is not answer i can contact ca but my ca has not solved my query properly so i have raise query here and from caclub no reply has come
Devajyoti Barman
(Expert) 25 January 2014
Taxation differs from state to state. Consult local advocate.
Anirudh
(Expert) 25 January 2014
I will answer your query. Please first tell what your CA told you.
R.V.RAO
(Expert) 26 January 2014
ancestral land cost is cost to your ancestors,ie father ,forefather etc...
but indexation cost for you will be taken from date of transfer in your name. so cost to previous owner or say cost as on 01/01/1981(if purchased before 01/01/'81) or market price as on 01/04/1981 whichever is higher will be taken as cost of land and indexation benefit will be given to you on this cost.
you can make tax planning if you invest whole of sale money(not capital gain amount) in a res.house if you already do not own A house in your name. or else buy capital gain bonds of govt.of india., FOR AN AMOUNT EQUAL TO THE CAPITAL GAIN ON SALE OF LAND ( LIMITED TO Max.Rs 50 lacs in a year) (THESE BONDS CARRY INTEREST less than bank F.D RATE AND LOCKED FOR 3 YEARS).ANOTHER PIECE OF LAND ALSO YOU MAY BUY TO SAVE CAPITAL GAIN TAX.
till you invest the capital gain money as stated above,you need to keep the same in capital gains account scheme in a bank.
before gifting a part of the capital gains amunt to your son , you have to discharge your liability under capital gains tax.only after you discharge your capital gain tax liability/tax planning/capital gains account scheme.
gifts to relatives(your son is relative)will not attract gift tax.
but such gift cannot discharge your libility under income tax act-capital gains tax.
pl. also note agr.lands used for agriculture purpose for previous 3 years before sale are exempt in india from tax. but agr. land means only such land notified to be so or not situated within a radius of 8 km of muncipal area or cantt.area with a population of ten thousand
R.V.RAO
(Expert) 27 January 2014
thank you Mr.Kalaiselvan
T. Kalaiselvan, Advocate
(Expert) 26 January 2014
