07 December 2015
my fathar sale rural agricultural land apprx 2000000 & he deposit all amount my saving a/c so any tax paid me or my father & how to claim exemption of 54b
07 December 2015
Transfer of rural agricultural land is excluded in the definition of capital asset u/s 2(14) of the IT Act, 1981. Hence, there is no requirement of compliance with section 54B.
Please note: It is assumed that- 1. Rs. 20 lakhs referred above was consideration specified in the sale deed (also the MV is Rs. 20 Lakhs); 2. Rural agricultural land is as per section 2(14)(iii) of the IT Act, 1961.
07 December 2015
Sale of rural agricultural land is exempted from tax. No tax payable on gift received from father. For claiming exemption u/s 54b you have to buy another agricultural land.
07 December 2015
As per my view Section 54B is not applicable for rural agricultural land. Hence, there is no requirement of purchase of another agricultural land.
You may cross check my view with any expert. You send me a PM for further discussion/ clarification.
CAclubindia
