20 April 2013
Section 10(37) exempts capital gain arising on transfer/acquisition of Urban agricultural land situated in any area referred to in section 2(14(iii)(a) or 2(14)(iii)(b). And as per section 2(14(iii)(a) or 2(14)(iii)(b: 1. Agricultural land in India, not being land situate— (a)in any area which is comprised within the jurisdiction of a municipality which has a population of not less than 10000; or (b) in any area within such distance, not being more than 8 KM, from the local limits of any municipality
Sir I want to clarify that if the agriculture property is situated either within the limit of 8km or in any area which has population of more than 10000. Then on acquiration of such Land by property, compensation received will attract Capital Gain or not.
20 April 2013
Sir actually the land acquired in an area within 8 km and also has the population of more than 10000 in the municipality. And the compensation received in april 2013. Pls clarify about the capital gain applicability
20 April 2013
It is clear that the land is urban agriculture land. If it's so, concentrate only upon other conditions of Section 10(37). . Section 10(37) is meant to grant exemption in case of compulsory acquisition of agriculture land by the Government. That too- Urban Agriculture Land. . As rural agriculture land is not treated as a capital asset so question of exemption of Capital Gains U/s 10(37) does not arise at all. . The conditions prescribed under Section 2(14)(iii) (a) and (b) can not be simultaneously satisfied and that's why these are connected with "or". For being treated as an urban land - it can either be in a municipal limit or outside the municipal limit. If it's in municipal limit , then we are not required to apply the condition prescribed U/s 2(14)(iii)(b) or vice-versa. .
20 April 2013
Pls clearify as it is a acquisition by haryana government and thus paid the compensation cheque also land is in urban area. Will it attract capital gaoin or not
22 April 2013
As per section 10(37)if agricultural urban land is transfer by way of compulsary acquisition and urban land is used for agricultural purpose during 2 year immediately perior to transfer, that above transfer not chargeble to tax from the A.Y. 2005-06 if compensation is received after 31.03.2004
22 April 2013
But as per Expert Sh. B.Chackrapani Warrier, Capital gain will attract. If the case is covered u/s 2(14)(iii)(b) Land should be in notified area.
Pls tell what is the notified area and will my case is covered under that notified area.
CAclubindia
