sale of property
This query is : Resolved
23 June 2011
hi...
my uncle has a land in agriculture area which he bought 19 year back. now he want to sale this land in higher amount. please tell me is there any income tax payable? if yes how it will be calculated? reply plz
my uncle has a land in agriculture area which he bought 19 year back. now he want to sale this land in higher amount. please tell me is there any income tax payable? if yes how it will be calculated? reply plz
CA PARAS BAFNA
(Expert)
23 June 2011
Agriculture land , situated in a rural area
(i.e. situated outside the prescribed range, which can be maximum of 8kms from any municipal area having population of 10000 or more.) is not treated as an asset for the capital gain purpose. As such profit arising out of such sale will not be taxable.
*
However, if the land is in Urban area and has been used for agriculture purpose by your uncle or any of his parents, the capital gain arising will be taxable.
*
He can be exempted from Capital Gains , in case he purchases another agriculture land anywhere in India of the amount of Capital Gain. Pl refer Section 54B .
*
Or, He may invest the sales consideration for the purchase of a Residential House, in case he is not having more than one residential house. Pl Refer S 54F
*
Capital Gains up to 50.00 lac can be invested in Capital Gain Bonds U/s 54EC
*
(i.e. situated outside the prescribed range, which can be maximum of 8kms from any municipal area having population of 10000 or more.) is not treated as an asset for the capital gain purpose. As such profit arising out of such sale will not be taxable.
*
However, if the land is in Urban area and has been used for agriculture purpose by your uncle or any of his parents, the capital gain arising will be taxable.
*
He can be exempted from Capital Gains , in case he purchases another agriculture land anywhere in India of the amount of Capital Gain. Pl refer Section 54B .
*
Or, He may invest the sales consideration for the purchase of a Residential House, in case he is not having more than one residential house. Pl Refer S 54F
*
Capital Gains up to 50.00 lac can be invested in Capital Gain Bonds U/s 54EC
*
23 June 2011
thanks sir..
plz tell me is there any other tax implication on this transaction? this land is in rural area. now he has not to pay any income tax.
plz tell me is there any other tax implication on this transaction? this land is in rural area. now he has not to pay any income tax.
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