cost of acquisition

[Guest]

To,

 Dear all,

 My colleagues have done following transaction.

1)First transaction :” X” was purchased 62R agriculture land(Outside Municipal limit) in April 1998 for Rs 2.5 Lakhs.

2) Second transaction : “X” has entered into agreement with Yin July 2009  by way of exchange i.e. X sold his agriculture land(62R) to Y and purchased his agreeculture(62R)urban land(within Municipal limit)  for the actual consideration recorded in agreement to Rs 7.50Lakhs (Rural)and 7.85Lakhs(urban) where as Fair market value was 2.7 lakhs (Rural) and 32 lakhs (Urban). Stamp duty paid on Market value Rs 36lakhs i.e.whichever is higher .

3) Third transaction :” X” again entered into agreement sold  his newly purchased urban  land (62R)to “Z “in Dec2010 for actual consideration to Rs 21 lakhs ,Where as the  market value recorded 33 lakhs.

4)Fourth transaction :  Reinvested in another agriculture land outside municipal limit for Rs 25 lakhs.

 In above case what will be the short term gain/long term gain? Please quote  some law references. of similar cases and advice.

  Thanks,

AI Summary

Exploring Tax Implications of Land Transactions: Agricultural to Urban Land Swaps and Capital Gains Analysis A user inquired about the tax implications of a series of land transactions involving agricultural and urban land. The transactions included purchasing agricultural land, exchanging it for urban land, selling the urban land, and reinvesting in agricultural land. The user sought advice on whether these transactions resulted in short-term or long-term capital gains and requested references to similar legal cases. A respondent noted that a proper legal opinion requires reviewing the relevant documents, emphasizing that the forum is intended for legal discussions. The inquirer offered to provide any necessary documents for further clarification.