Capital gain tax on residentail land sale

I booked a residential plot in 2006 and paid 95% of its cost in installments till Aug 2008. I have not yet registered the plot on my name(5% is still remaining). Now I want to sell it and it will attract capital gain of approx 50L. How much tax liability I have for it. Can I invest this money somewhere to save tax, as of now I don't own any residential property on my name.

asked May 05 '12 at 16:23 by Jitendrak 1455


It can't be treated as long term gains as property was never acquired fully in your name.

You would have to pay income tax as per slab rates on whole gains from it. There is no provision for saving tax on such gains.

answered May 24 '12 at 23:27 by Pankaj Batra 5.2k320

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HI Pankaj, Thanks a lot for the reply. During this period the circle rates has been revised will this affect the capital gain calculation. Ex Booking Rate : Rs 8750 psy (Circle rate unknown as it was new area) Selling Rate : Rs 27000 psy(circle rate is Rs 18,000 psy) What is the capital gain for 1 sy (27000-8750)psy or (27000-18000)psy
(Sep 01 '12 at 11:31) Jitendrak
Your gains would be (selling price - buying price - any other charges incurred in property buying like brokerage etc), no matter whats the ongoing rate.
(Sep 01 '12 at 16:21) Pankaj Batra

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Asked: May 05 '12 at 16:23

Seen: 1,826 times

Last updated: Sep 01 '12 at 16:21