Exmption of long term capital gain on sale of vacant land

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SUMIT KUMAR (Querist)
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29 November 2010 A land which purchase on 1996-97
It is 8 km Beyond Municipal Area
Sale in F.Y.2010-11
But there is no Activity during
holding period
After Transfer such land there is arise some profit
Is it Exempt from Tax

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 November 2010 The capital gain as such is not exempt from tax. However, If assessee invests entire sales consideration in purchasing a Residential House Property (Condition -Only one house is owned by the assessee, other than the new house), exemption U/s 54F may be availed.

venkatraman shrinivas

venkatraman shrinivas (Expert)
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01 December 2010 Only agricultural lands which are located beyond the 8 km radius of the Municipality or a place having population of less than 10000 is exempt. Even here, it has to be proved that agricultural operations had been done until its sale. In the given case since the land was vacant it would suffer CGT on the gains as ascertained after adopting the indexed cost of acquisition.

NITIN SHARMA

NITIN SHARMA (Expert)
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02 December 2010 If any person can get the benifit of agricultural land than the land must be agricultural land and this is the basic condition only a land swituated beyound 8 km. from muncipal juridiction does not mean that land is agricultural land.

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