This is 10% Kissan quota plot received against agricultural land aqusition. Allotment Plot document not actual plot yet allotted is selling much less price than circle rate and development charges must be born by buyer. My question is that is income from other sources according to act apply on this deal as plot yet not be finalised and still only in papers. Second as it is a compensation land and of Kissan quota 1% tax deduction by buyer law still applied to it. Second what will be capital gain liability of the seller(Kissan) arise because of this deal.
Hi,
I did not understand the question clearly but let me tell you the answer for the parts which I have understood:
1. Yes, buyer will need to deduct 1% TDS if sale consideration is more than 50 lacs.
2. Capital gain to seller will depend upon the following factors:
A. Purchase price
B. Selling Price
C. Stamp duty value
D. Date of acquisition
E. Date of sale
F. Amount and date of improvement if any.
If farmer sold Land allotted to Him against aquisition at nit price which is not considered capital assets that time what will be tax implication on his part means capital gain and 1% deduction by buyer.
The allotment of plot against the agricultural land acquisition constitutes acquisition, if the allotment is firm and indicates the details of the plot allotted to you, thus identifying the property acquired by you. The actual transfer of the plot in your name may take some time but as long as it is a firm allotment with property duly identified, you are deemed to have acquired the plot for the purpose of the computation of capital gains on the acquisition of agricultural land and also for computing capital gains on the sale of your plot allotted to you.
TDS is applicable if the transfer price of the plot if more than Rs 50 Lakhs, even if it is only an allotment letter but the rights of ownership of an immovable property are transferred to the buyer.
Hello,
I could not understand your query clearly. Who is buying the property ? From whom ?
If the property is purchased at a lesser valuation then the profit will be taxed under Income from Other Sources.
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
Sorry, the facts given by you are not clear. Please elaborate in a simpler form or in Hindi, so that we can understand the question and reply accordingly.
