Claim for exemption
This query is : Resolved
PANKAJ PATIL
(Querist)
19 September 2012
I had been inherited with an agricultural landwhich I had converted to Non-agriculturalplots in 2009 and then I had sold some of theplots to more than one person (different-different purchaser) in 2009, 2010, 2011 &2012 (the major share of amount has comefrom the plots sold in June 2011 till March2012). The amount which I received from thesale was Invested in an under constructionresidential flat in June 2011, the agreementvalue for the flat was Rs. 27 Lacs. And theamount which I received after the sale ofplots was approximately Rs.24 lacs. Now Iwanted to know if I could claim forexemption u/s 54F or this will be treated asbusiness income.Kindly provide your expert opinion in thisregards.
Amol S Joglekar
(Expert)
19 September 2012
The case is decided as per the facts of each case. Prima facie this is business income. (Adventure in th nature of trade)
Message likes :
1 times
CA.Sourabh Sethia
(Expert)
19 September 2012
the amount will be computed each year and the capital gain will be calculated accordingly and you can claim exemption U/s 54F for all the Years but to exempt your gain for the year 2009 you need to get the construction completed by 2012 (i.e Within 3 Years)
but the amount not utilized till date should have been invested in the capital gain account scheme every year
but the amount not utilized till date should have been invested in the capital gain account scheme every year
Message likes :
1 times
PANKAJ PATIL
(Querist)
19 September 2012
Does Converting the agricultural land to NA will have any issue in claiming the exemption in this case?
CA VISHNU GAVKARE
(Expert)
20 September 2012
If you had converted land with the intention to business then it will be busuness and no exemption can be claimed. To give more focus on activity if you have purchased and sold any plot other then this also then it has to be considered as business income and exemption can not be claimed but you can claim the expenses as expenditure as you are in to that business. If no then you can claim the exemption.
Conversion has no effect on the transaction.
Conversion has no effect on the transaction.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
