Tax implication on compulsory acquisition on agricultural land

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This query is : Resolved

ANUBHAV SHUKLA (Querist)

12 June 2014 i want to know abt tax implication on cap gains from compulsory acquisition of agricultural land the facts are as under: my father has a patrimonial land which we used for agriculture through giving it to our servant which is acquired by the central govt this year for establishishing military base, my queries are as under. 1) Can i claim it as exemption u/s 10(37) or 54B. 2) how can i know is it a rural agricultural land or urban i know the concept what i want to know is from where i get the details of kms far from municipality. 3) whether is it a huf land as it is a patrimonial land. Also my father has gifted some amount to my brother for purchasing house so if its not exempt under above sections can he claim exemptn under section 54F on the amount given to my brother for purchasing of house or can we alternatively registered it to my father name n then gift to my brother.

Nikhil Kaushik

Nikhil Kaushik (Expert)

13 June 2014 1. if the land acquired is agriculture land or not (distance from municipality) is to be checked from municipality or talati office.

2. if the land is agriculture land, the income will be exempt anyways.

3. if the land is not agriculture land but satisfies the conditions provided in 10(37), the income shall again be exempt

3. being a patrimonial land doesn't make it HUF land unless a HUF was formed and the said land was included in the HUF.

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