HOW TO SAVE CAPITAL GAIN TAX ON SELLING OF LAND.

There is a land which is a commercial area 4600sq yards at hyderabad ready to sell . 1.Land bought in the year 1980 at rate of 1000RS per sq yards that equal to 46lakhs . 2.Im interested to sell the land to a party for 18,000Rs per sqt yards which is under rate as per current govt valuation which is 25,000rs per sq yards. 3.Im getting a problem here is i have to pay the capital gain @ 25,000rs which im not receiving it, becz im selling the land for 18,000 per sq yards. 4.Im waiting long time to sell the land but no party gave much interest, but now i have got a good sound party but who is ready to buy it but i have to pay whole capital gain as per govt value which im ot enjoying.. 5.IS there no solution to sell the land for 18,000 and register.

asked May 29 '11 at 13:53 by Rajender 1111


For computation of capital gains, circle rate or actual selling price has to be considered, whichever is higher.

Unfortunately nothing else can be done in this case and you will have to pay income tax on capital gain computed according to circle rate prices.

answered May 30 '11 at 03:39 by pankaj 5.2k320

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Asked: May 29 '11 at 13:53

Seen: 1,918 times

Last updated: May 30 '11 at 03:39