Reg. capital gain

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Sandeep K (Querist)

11 February 2017 If a person sale his irrigated agriculture land which is situated around 10km far from territory of municipal corporation, he sold it in Rs. 25,00,000/-Lac in which, he purchased a agriculture land of Rs. 10,00,000/- & rest 15,00,000/- he invested in commercial establishment / Shop.
will it attract capital gain provisions?

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)

11 February 2017 Question of Capital Gain Tax arises only when following conditions are satisfied.
1. Capital Assets
2. Transfer of Capital Assets
3. Such transfer should attract capital gain provisions.
In this case there is no capital assets as agriculture land is not considered as capital assets hence no capital gain tax

Sandeep K

Sandeep K (Querist)

11 February 2017 Thank you very much sir,

Anand

Anand (Expert)

11 February 2017 mayur sir.. if agricultural land is in specified area. then it is surely considered as capital asset.. as per definition of specified area.. if the land is 10 km away from municipality and having population of more than 10 lakhs.. then this land is surely considered as capital asset.. and transfer of it attracts capital gains..

Anand

Anand (Expert)

11 February 2017 to comment anything about exemptions u/s 54.. I need to know period of holding of land..

Anand

Anand (Expert)

12 February 2017 my mistake.. if land is 10 km away from municipality then it is not a capital asset.. just checked.. sorry for the wrong answer.

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