Capital gain Tax payable
Dear Praveen
If you have been holding the Land for more than 3 years.. You come in the bracket of Long Term Capital Gains
If you sell that land and dont buy any other real estate in india, you have to pay 20% capital gain on the notional profit made ( Difference in Sale Price and cost price). Since in this case, you have inherited the land, the market value of that land as on the date you inherited, is considered your cost of accquisition. You would get the benefit on indexation and your capital gain would be less than 20%.
If you have been holding the Land for less than 3 years.. You come in the bracket of Short Term Capital Gains
You will have to pay almost 30-33% Gain Tax on the notional profit. You do not get any exemption even if you buy any other property
Hope you find the info useful
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Ram
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