Long term capital gain
This query is : Resolved
23 February 2015
respected sir,
i had sold the agriculture land situated in vadodara withint the 8 k.m from muncipality.
so it is agriculture lan as per the income tax.
and what should i do to save any tax liabilities...
please provide me the advise...
caan i buy agriculture land with in the 8 k/m from the muncipality??
please provide guidance for it...
i had sold the agriculture land situated in vadodara withint the 8 k.m from muncipality.
so it is agriculture lan as per the income tax.
and what should i do to save any tax liabilities...
please provide me the advise...
caan i buy agriculture land with in the 8 k/m from the muncipality??
please provide guidance for it...
CA R SEETHARAMAN
(Expert)
23 February 2015
Yes it can be bought no capital gain tax payable.
54B. Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases.- (1) Subject to the provisions of sub-section (2), where the capital gain arises from the transfer of a capital asset being land which, in the two years immediately preceding the date on which the transfer took place, was being used by the assessee or a parent of his for agricultural purposes (hereinafter referred to as the original asset), and the assessee has, within a period of two years after that date, purchased any other land for being used for agricultural purposes.
54B. Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases.- (1) Subject to the provisions of sub-section (2), where the capital gain arises from the transfer of a capital asset being land which, in the two years immediately preceding the date on which the transfer took place, was being used by the assessee or a parent of his for agricultural purposes (hereinafter referred to as the original asset), and the assessee has, within a period of two years after that date, purchased any other land for being used for agricultural purposes.
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Rupesh Jain
(Expert)
24 February 2015
you are using for agriculture purpose then you cna get benefit if you buy aother agriculture land from this amount u/s 54b. or invest in specified bonds.
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24 February 2015
sir it is within the 8 k.m from the muncipality????
our c.a told that any land is situated within in the 8 k.m from muncipality than it is not to be consider as a agriculture land.
and how can we prove that we had used it for agriculture.
means what is the documentetion require for it.
our c.a told that any land is situated within in the 8 k.m from muncipality than it is not to be consider as a agriculture land.
and how can we prove that we had used it for agriculture.
means what is the documentetion require for it.
CA R SEETHARAMAN
(Expert)
24 February 2015
Doesn't matter as you are going to buy another agricultural land.
24 February 2015
sorry sir i am littel bit confused.
simpelly,
we sold the agriculture land which is situated from 8 k.m from municipality...
now what is the way to save tax from long term capital gain..
our c.a told that ur land is within 8 k.m from muncipality so it is not agriculuture land as per the incom tax.
so is he true???
and also guide me the way to save tax from ltcg...
simpelly,
we sold the agriculture land which is situated from 8 k.m from municipality...
now what is the way to save tax from long term capital gain..
our c.a told that ur land is within 8 k.m from muncipality so it is not agriculuture land as per the incom tax.
so is he true???
and also guide me the way to save tax from ltcg...
CA R SEETHARAMAN
(Expert)
24 February 2015
Capital gain on sale of agricultural land beyond 8 km from municipal limit is exempted. If you sell agricultural land within 8 km, to get exemption either you have to buy another agricultural land or buy a house property if you are already owning only one house or invest the amount in bonds (NHAI and REC combined) in any financial year is Rs 50 lakh.
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