tax on land sale

HI Pankaj, Last year my father sold some agricultural land and kept amount in bank for sometime.After that he took it and bought sites with that. Today he got notice from income tax department to pay tax on that amount.

How to handle that. He reinvested same in sites. SHould he pay tax for that amount? If not how to reply to Incoem tax department.

Regards, Supraja

asked Sep 22 '11 at 16:57 by Supraja81 1681113

If new property was not purchased before income tax return filing last date (31st July), the sale consideration amount had to be invested into capital gains scheme accounts. If this is not done, income tax department will ask for tax payment.

If your father has invested into residential property or into agricultural property, then income tax benefit would arise. If not, tax would be payable.

I would advise you to not waste any time further and consult an experienced CA/tax professional expert in property matters to avoid any serious consequences.

answered Sep 24 '11 at 18:36 by Pankaj Batra 5.2k320


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Asked: Sep 22 '11 at 16:57

Seen: 1,319 times

Last updated: Sep 24 '11 at 18:36