Capital Gain Tax on Exchange of Asset/Property

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  1. tiks

    tiks New Member

    sir ,
    My father purchased a land in the year 1990 for Rs.20,000. After his death the property was transferd in my mothers name and later on my name as she realeased her rights from the property.
    Now the property has my sole name on it. Today the cost of the land is 90 lakhs. If i sell the property to a developer in exchange of agriculture land worth 90 lakhs , wili i have to pay capital gain tax on my property ...... Pl guide
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, you will have to pay Capital Gains Tax on this.

    The sale price would be considered as the market value of the Agricultural Land.
     
  3. tiks

    tiks New Member

    that means i will have to pay on the amt of 90 lakhs,,,,, or the amout shown on the registration document ,,,,,besides if i have reinvested the amount in property immediately , why am i liable for Capital gain
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    If you have reinvested the amount, you can claim exemption under Section 54/ Sec 54EC/ Sec 54F
     
  5. tiks

    tiks New Member

    will iget full exemption ,,,,then ,,,,
     
  6. gaurav_kumar

    gaurav_kumar Well-Known Member

    It depends on the amount you've invested.
     
  7. gaurav_kumar

    gaurav_kumar Well-Known Member

    Moreover, the investment should be either in Residential House or in specified bonds to claim exemption.
     
  8. tiks

    tiks New Member

    Thank you for your response sir.. I just wish to clarify that the amount of Rs 90 lakhs that my land has the currnet value of is being exchanged for an agriculture land for the same value. is it then that i can be exempted of capital gain tax..... the land purchased ealier in 1990 by my dad as said earlier was an NA plot and now after 24 years i am exchanging plots with another person ,,,,which means i am giving him my NA plot worth 90 lakhs and i am getting agriculture land worth 90 lakhs ,,,,,, so i feel that there is no profit that i am taking to pay Capital Gain tax.... pl clarify
     
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