Sell of Residential Land

Dear Pankaj Ji: I request you for an advice.

My daughter purchased a plot in FY 96-97, which she sold in FY 11-12 at much lower prevailing price than the circle rate. The plot is in unapproved area and the practice of sale/purchase is power of attorney. To save tax on LTCG, U/s 54F she would utilize the whole consideration amount (sale proceeds) in construction of a house, for which she has already paid part payment to the developer for a plot and the balance deposited in Capital gain account (before due date of filing the return). My question is does she need a valuation report from Govt. Regd. valuer and your advice on the sale lower than the circle rate.

asked Jul 19 '12 at 22:05 by Pal 11


Long term gains should be calculated as per circle rate in case selling price is lower than that.

answered Jul 19 '12 at 22:44 by Pankaj Batra 5.2k320

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Asked: Jul 19 '12 at 22:05

Seen: 1,610 times

Last updated: Jul 19 '12 at 22:44