selling an agriculture land within 8 kms from corporation limit?

hello sir, i sold my agriculture land,and from that money a portion was spent to jewlley & purchased a agriculture land and rest i want to deposit in bank as FD n enjoy the interest ,now i heard that my land is less than 8 km s from corporation limit & i need to pay capital gains,is there any benifit if i am a lady tax payer? what am i supposed to do ,i ahve already purchsed jewellery?

asked Jul 18 '11 at 17:16 by sivakumar 1233

so there is no need to show the jewelery purchsed (asuming)just pay the tax for the amount remaining after purchasing the agriculuture land
(Jul 19 '11 at 09:56) sivakumar
Jewelry purchase won't matter in capital gain computation and income tax. Income tax has to paid with following calculations: Land Purchase Year = A Land Purchase Cost = P Cost Inflation Index (CII) for purchase year = X Sale Year = B Selling price = Q CII for sale year = Y Indexed Purchase price = P x (Y/X) = R Long term capital gain = Q - R = S Income tax on capital gain = S x 20%
(Jul 19 '11 at 09:59) pankaj
As you also bought another agricultural land, some exemption will be available under section 54B.
(Jul 19 '11 at 10:01) pankaj

There is no extra benefit available for a lady tax payer.

Either you need to pay income tax @ 20% on gains amount with indexation benefit or you can save income tax by investing into another agricultural land (u/s 54B) or a residential property (u/s 54F) or capital gain bonds (u/s 54C).

answered Jul 18 '11 at 21:55 by pankaj 5.2k320


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Asked: Jul 18 '11 at 17:16

Seen: 2,456 times

Last updated: Jul 19 '11 at 10:01