I purchased a piece of agricultural land for Rs.19000/- and also paid Rs.24000/- to the housing society for its development in the year 1989-90..Now I have sold that land and expected to receive Rs 10.0L in the F.Yr 2017-18 against agreement of Rs. 14.16L.I have not yet registered the land.This land is still out of Municipal area.Also I have paid Rs. 3.00L on 01.12.2017 out of the advance money received, to a builder as an installment of a new flat in which I am a Co-Owner( co- applicant) with my son.I have one ancestral house in my name ,a portion of which I have let out on rent.
Now let me know, whether any tax liability arises out of above transaction? If yes, how much in F.Yr 2017-18 and how much in 2018-19. ? and also which form is applicable in my case.?Is there any way to save tax.
I am unable to know the market value of the land for 2001.Hi,
Market value of the property as on 1.4.2001 is first point and extremely important.
If you can't find the value, you have to get the property valued from a registered valuer as on 1.4.2001.
Once, we know that value, we can tell you the amount if capital gain, if any.
If the piece of the agricultural land given to the housing society is still in the nature of agricultural land without getting into agricultural land, then the capital gains arising out of sale of such agricultural land is exempt. However, it is converted into non-agricultural land and you are selling it now, the sale proceeds are subject to long term capital gains. In any case, your sale is not completed. The capital gains arises only when there is a transfer.
Assuming that there is LTCG on the sale of your converted agricultural land, the investment in a new house to claim exemption u/s 54F should be done within 1 year before or after the date of transfer. Now it will be in your own interest to register the sale to claim exemption.
You need to apply to the Sub-Registrar office to get the valuation of your land in 2001
Hello,
You need to know the market value as on 01st April 2001. In order to get the valuation, you can yourself approach the valuation officer yourself or approach a registered valuer to get the valuation for you.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Can I not calculate the capital gain tax, taking base year as 1981 inspite that the base year has been revised.
If yes ,pl. reply to all my quarries posted on 21.12.2017. (Pl. refer transaction details already posted).
The land is still not converted into not agricultural land.What are the criteria for getting exemption ?