Capital gain on agriculture land

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monika

monika (Querist)
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28 July 2016 CAN WE REINVEST IN RESIDENTIAL PLOT TO SAVE CAPITAL GAIN ON SALE OF AGRICULTURE LAND

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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28 July 2016 Rural Agriculture land is not capital asset [Refer section 2(14)]. Ensure that agriculture does not fall under stock-in-trade [refer section 45(2)]. There is no capital gain on sale of rural agricultural land.

There is no requirement of investment on sale of rural agricultural land. In case of sale of urban agricultural land [Refer section 2(14)], the same may attract capital gains. A deduction u/s 54B is available on investment in either rural or urban agricultural land subject to provisions of section 54B.

monika

monika (Querist)
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28 July 2016 can we investment in residential plot at sale of urban agriculture land

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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28 July 2016 Yes under section 54F of the Income Tax subject to provisions contained therein.

monika

monika (Querist)
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28 July 2016 sir please solve these query about 54F
1. can we buy only plot ?
2. is it complusory construction on it ?
3.what is limit number of housing property to buy ?
4 can we buy more than one housing property?
5 if any one have alredy a house property can he get benefit of 54F ?

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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28 July 2016 1. exemption u/s 54F is available for purchase or construction of residential property.
2. As above.
3. One residential house.
4. As above.
5. Can hold one residential property other than that is going to acquire for the purpose of section 54F.

Refer section 54F for your benefit.

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monika

monika (Querist)
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28 July 2016 THANKS SIR
PLEASE TELL ME THAT IS THERE ARE ANY OPTION TO SAVE CAPITAL GAIN AT SALE OF URBAN AGRICULTURE LAND IF I HAVE ALREDY HOUSE PROPERTY CAN NOT INNVEST IN IT

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