Capital gains

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This query is : Resolved

k varadharajan (Querist)

25 February 2013 Hi friends

My client is selling a vacant land and going to purchase a vacant land.

My client already has two residential houses.

Whether investing in new land will help my client in avoiding Capital Gains

Thanks in advance

@VaibhavJ

@VaibhavJ (Expert)

25 February 2013 Hi,

Deduction u/s 54EC can be claimed.

Thanks!!

k varadharajan

k varadharajan (Querist)

25 February 2013 Thank you very much

Message likes : 1 times

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

26 February 2013 Dear Author,

In Your Case, No Exemption Under CG Can be Claimed.
Your Client have to Pay Tax, No Option.

Pls Clear Whether This Land is Agriculture land Then Only Exemption Under section 54B Can be Claimed provided Some Conditions Get Fulfilled.

Regards,
CA Ayush agrawal

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

26 February 2013 For Claiming 54b, land Must be agriculture Land.
using since 2 years.by Assessee or His parents.

k varadharajan

k varadharajan (Querist)

26 February 2013 Dear Sir,

Thank you very much for your detailed reply.

The Land is certified as wet land as per the village Administrative Officer record. But my client has not cultivated or shown any agricultural income in his return. The land is situated 8 kms away from Municipal area. Population is less than 10000.

If the land is within 8 kms can i claim exemption u/s 54B

Please update

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

26 February 2013 No, Exemption u/s 54B Cant be Claimed.
Since It Must be Used for Agriculture Purpose Since 2 Years Atlest.

But Since Your Land is Situated 8 KMS Away from Munciple Area, Its Will not be Capital Asset.
and Hence No Capital Gain Tax Applies.
Its Exempt Income.

Just prove That This is agriculture Land if any kind of Enquire Comes.

If Any Confusuion Left in Your mind, pls revert.

The More Info You Provide to Us, More Options You Will Get to Save/Plan the Tax.

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