Capital gains

Direct Taxation

When we sale the land that is given by government..the cost of acq will be fmv on the date of transfer and the sale consideration will be done at the fmv on that day..so there will be no capital gains..can anyone help me this.. whether there will be CG or not??

vasabattula abhinav

CA Final

★ 85

06-Aug-21 21:38

638

Answers (5)

If the land given by govt is rural agricultural land then there is no capital gain and if the land is not rural agricultural land then obviously capital gain would arise

phanindra raj

CA Final

★ 9K+

06-Aug-21 22:43

How can there would be capital gains if the sale consideration and cost of acq are same??

Thread Starter

vasabattula abhinav

CA Final

★ 85

06-Aug-21 22:45

If sale consideration is greater than cost then only capital gain would arise. The fair market value concept is only applied to cost as it is given by govt

phanindra raj

CA Final

★ 9K+

07-Aug-21 10:16

The fair market value is to verified on date when land is given by govt but not on the date of transfer for the cost purpose

phanindra raj

CA Final

★ 9K+

07-Aug-21 10:17

phanindra raj

The fair market value is to verified on date when land is given by govt but not on the date of transfer for the cost purpose

Thanks ð???

Thread Starter

vasabattula abhinav

CA Final

★ 85

07-Aug-21 13:23