My family has some un-mutated house land as well as agricultural land in village which we intend to sell. The land was transferred in our grand father's name before independence under Zamindari system. My queries are as follows: 1. Can I avail indexation benefit on sale of village residential land ? 2. Is sale of rural agricultural land under perview of LTCG or exempted ? 3. Is the Fair Market Value of 1981 to be considered for indexing or FMV of 2012 ?
Yes you can claim indexation benefits for sale of village residential land.
Yes the sale of rural agricultural land is outside the purview of long term capital gain.
No fair market value of 2001 is to be considered and then index it.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
1. Yes, you can avail the indexation benefit on sale of village residential land.
2. An agricultural land in rural India does not form part of the definition of a capital asset and hence, there will be no capital gains on the sale of such land.
3. For the purposes of calculating capital gains on such properties, you have to know the fair market value (FMV) of a property in 2001.It will be considered for capital gain purpose.
Hi
1.Yes Indexation benefit will be available.
2.Its Exempted.
3.FMV of 2001 to be considered.
Hope it helps
Hi,
1. Yes.
2. It is exempted.
3. FMV as on 2001 to be considered.
1) Yes you can avail indexation benefit
2) Exempted
3) FMV as on 01.04.2001
1. Yes, you can.
2. You need to check whether as per income tax rules, the land is rural agriculture land or not. If as per income tax rules, it's a rural agriculture land, then it is exempt from capital gain.
3. You need to take fmv of 1.4.2001.
