Capital gain tax sale agriculture land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2016 Sir
mere bhai ne 850000.00 ka plot october 2011 mein sale kiya tha aur december 2011 mein agriculture land purchase kar li to kya mere bhai par capital gain tax banega yaa nahi .

Expert : Anonymous

Expert : Anonymous (Expert)

14 September 2016 You need to provide detail about sold plot, whether it was agricultural land or otherwise. If it was agricultural land - No tax liability, because agricultural income is not taxable. For further clarification you may write to info@wealth4india.com or Logon to www.wealth4india.com - Online Tax filing & Tax advisory portal for Individuals. Thanks...

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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18 July 2024 Aapke bhai ne October 2011 mein 8,50,000.00 ka plot bechkar December 2011 mein kheti land kharida hai. Yeh transaction capital gain tax ke tahat kaise treat hoga, uska jawab nimn hai:

### Capital Gain Tax Calculation:

1. **Calculation of Capital Gain:**
- **Sale Consideration:** Rs. 8,50,000.00 (Amount received from sale of plot)
- **Cost of Acquisition:** Iska matlab hai ki aapke bhai ne woh plot kab kharida tha aur uske liye kitna paisa diya tha.
- Agar aapke bhai ne woh plot pehle hi 2011 mein kharida tha aur ab becha hai, toh iska cost of acquisition woh purchase price hoga jo usne woh plot khareedne ke samay diya tha.
- **Indexed Cost of Acquisition:** Yadi aapke bhai ne plot ko pehle se hi kharida tha, toh woh Indexed Cost of Acquisition ko bhi consider karenge, jisse woh capital gain ke liye applicable hoga.

2. **Capital Gain Calculation:**
- **Capital Gain = Sale Consideration - Cost of Acquisition**
- Yadi aapke bhai ne plot ko pehle se hi 2011 mein kharida tha, toh:
- Capital Gain = Rs. 8,50,000.00 - Cost of Acquisition
- Yadi aapke bhai ne plot ko pehle se hi kharida tha, toh uska capital gain tax calculation aapko cost of acquisition se kar sakte hain.

3. **Tax on Capital Gain:**
- **Long-term vs Short-term:** Yadi plot ko 3 saal se adhik time ke liye rakha gaya tha (jo ki October 2011 se December 2011 mein possible nahi hai), toh yeh long-term capital gain hoga.
- **Tax Rate:** Long-term capital gain par 20% tax lagta hai, agar applicable hai.

### Exemption u/s 54:

Agar aapke bhai ne plot bechkar kisi aur residential property ko purchase kiya hai within the specified time frame, toh woh **Income Tax Act, 1961** ke Section 54 ke tahat capital gain tax se bach sakte hain. Is section ke antargat, yadi capital gain amount ko dusri residential property ke liye invest kiya jata hai, toh us capital gain par tax nahi lagta hai, ya phir uska partial exemption mil sakta hai.

### Conclusion:

1. **Capital Gain Taxable Hai ya Nahi:** Agar aapke bhai ne plot ko short-term hold kiya hai, toh uspar applicable capital gain tax calculate hoga.

2. **Exemption under Section 54:** Yadi aapke bhai ne capital gain amount ko dusri residential property mein invest kiya hai, toh uske liye section 54 ke antargat exemption claim kiya ja sakta hai.

Is mamle mein specific details aur exact transaction ke basis par tax advisor ya chartered accountant se salah lena uchit hoga, taaki sahi jankari aur guidance mil sake.

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