Capital gain tax on sale of agriculture land

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dinesh gupta (Querist)
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30 September 2013 Hi!
I have purchased agriculture land in urban area in 2006-07 for Rs. 70,000.00 and sold the same in 2012-13 for Rs. 18,00,000.00 and have purchased agriculture farm land in urban area for Rs, 11,00,000.00 in 2012-13. Pl. let me know the amount on which I have to pay Capital Gain tax.

regards
Dinesh Gupta

CA Pallav Singhania

CA Pallav Singhania (Expert)
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30 September 2013 Exemption under section 54B can only be claimed by an individual.

1) You can claim this exemption only if urban agricultural land transferred is used by you or your parents for agricultural purpose during 2 years immediately before the date of transfer of such agricultural land.

2) You have purchased another agricultural land whether rural or urban to be used for agricultural purpose within 2 years from the date of transfer of original agricultural land.

The amount of exemption is equal to the amount invested in the purchase of new agricultural land subject to the amount of capital gain.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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30 September 2013 If all the above condition is fulfilled then,

Sale Consideration: 1800000
Less:
Cost of Acquisition 1,16,257

{852/519 X 70000}

LTCG 16,83,743

Less: Exemption U/S 54B 11,00,000

LTCG 5,83,743

It will be taxed @ 20 percent..

dinesh gupta

dinesh gupta (Querist)
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30 September 2013 what happens in case if I have shown any income from the sold agriculture land.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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30 September 2013 it will be liable to tax....

dinesh gupta

dinesh gupta (Querist)
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30 September 2013 on Rs. 18,00,000.00

CA Pallav Singhania

CA Pallav Singhania (Expert)
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30 September 2013 If you've shown the purchase of another land and claimed exemption U/S 54B, then on 583743 else on 16,83,743..