Agricultural land sale and money transfer to his/her children
This query is : Open
04 January 2014
An agricultural land sale in Himachal Pradesh. And by a lady and money give's. To his/her children's for investment in real estate within. 6 months.
so what. Is Best possible option for capital gain. Tax
so what. Is Best possible option for capital gain. Tax
04 January 2014
Mr.Sourabh Singh
You are speaking of "Agricultural Land" in general usage.
You have to determine whether the said land is "Agricultural Land" per the provisions of section 2(1A) and Section 2(14) as per latest amendments.
If as per the provisions of the above two sections it is an agricultural land the gains received on sale of the said land are exempted.
If the said land does not fall under the ambit of section 2(1A) and section 2(14) it is not an agricultural land even in fact agricultural activities are being carried on the said land and the gains are taxable.
If the gains are taxable under the Income-tax Act, 1961 you can avail the benefits of exemption if you purchase another agricultural land as per provisions of section 54B.
In case if the gains are taxable if you distribute the money received on sale of the said agricultural land to your children you will not get any exemption.
If the gains are exempted, after meeting the, conditions as per provisions of section 2(1A) and section 2(14) you can utilise the money received on sale of the agricultural lands as per your wish.
Best Wishes
Sathikonda
You are speaking of "Agricultural Land" in general usage.
You have to determine whether the said land is "Agricultural Land" per the provisions of section 2(1A) and Section 2(14) as per latest amendments.
If as per the provisions of the above two sections it is an agricultural land the gains received on sale of the said land are exempted.
If the said land does not fall under the ambit of section 2(1A) and section 2(14) it is not an agricultural land even in fact agricultural activities are being carried on the said land and the gains are taxable.
If the gains are taxable under the Income-tax Act, 1961 you can avail the benefits of exemption if you purchase another agricultural land as per provisions of section 54B.
In case if the gains are taxable if you distribute the money received on sale of the said agricultural land to your children you will not get any exemption.
If the gains are exempted, after meeting the, conditions as per provisions of section 2(1A) and section 2(14) you can utilise the money received on sale of the agricultural lands as per your wish.
Best Wishes
Sathikonda
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