Sec.54 b

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Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2012 My father and other 4 brothers have ancestral urban land. I want to know that if we sell land at specified sum say Rs.1 crore and purchase a new agriculture land by each brother separately of Rs.20 lacs then what is the tax consequences ?

1] can each of them separately claim deduction u/s 54B?
2] Can this land be called as HUf property?
3] Can we claim deduction simultaneously u/s 54B and sec.54 F?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

29 December 2012 1. The Ancestral Urban Land should be an Agriculture Land for getting benefit of Section 54B. If it is not so, forget Section 54B. 54F benefit may be availed provided other conditions of 54F are being satisfied.
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2. Exemption can individually be claimed by all the 5 brothers in respect of their respective share in the land.
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3. Whether the land is treated as Individual property or an HUF property ?
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HUF property
If the land was shown in the name of your Grandpa's HUF.
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Individual Property-
If the land was earlier shown as your Grandapa's Individual Property.
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Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2012 Thank you very much Bafna sir,
The land is agriculture land and my grandfather is died so it is named by all five sons of my grandfather it means in 7/12 there are five names.

My confusion was that if it is called HUF property then deduction under sec.54 B is not available.So kindly please suggest me in this situation and clarify the concept of HUF, if possible.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

30 December 2012 In the land revenue records i.e. in 7/12, if individual names are written, and Grandpa's HUF name is not mentioned, the property can be treated as Individual Property of the "Pandavas" i.e. of the 5 brothers. Accordingly benefit of 54B can be claimed.
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Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2012 Dear Bafna sir
Thanks for advising these "Pandvas",,,,,

Now my query is resolved,,,, Thanks for prompt reply,,,,

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