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?
1 Answers
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).
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so there is no need to show the jewelery purchsed (asuming)just pay the tax for the amount remaining after purchasing the agriculuture land
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%
As you also bought another agricultural land, some exemption will be available under section 54B.