Capital Gain On Sale of Plot

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Radhika (Querist)
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17 March 2009 Long term capital gain on sale of plot. assesse can take benefit in

section 54 (sale of house property)
section 54B (sale of Ag. Land)
section 54F(sale of LTCasset other than house property)

A plot is land or other

question-2 when plot was purchased it is agriculture land & after it is plot as per income tax calculation tell its status.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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17 March 2009 In order to qualify for "Agriculture land in India", it is not necessary that land was once agri. land. It must be agri-land at the time of sale. Where land is under agriculture operation at the time of sale it is taken 'agri-land'.

Factor to be considered while determining whether a particular land is agriculture land or not:-

1. Whether land is classified as agri-land in the revenue record and it was subject to the payment of land revenue.

2. whether land was actually used for agriculture purpose or not.

3. There are also some more points which are also taken into considerations.

All these factors would be present or absent in any case. In each case one or more of these factors may make appearance and ultimate decision will have to be reached on a balanced consideration of the totality of the circumstances.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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17 March 2009 Sec 54 - No benefit available.
54B - Only on the sale of agri-land.
54F - Any long term capital assets other than house property.
54EC - Any long term capital asset.

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