Acquisition Cost of Land

Hi, Everyone.

my qt is.

1.Mr. A sold one residential unit and purchased one farm land includes saplings, now he constructing one residential unit  in that land. In Purchase deed  land cost and sapling cost  mentioned separately.

Now, should i consider Sapling cost in  acquisition  cost of land.

2.  Wt if while constructing they destroyed those saplings.

Please give your view on this. Thank YOu.  

  

 

Replies (3)
Quick Summary
This discussion explores whether the cost of saplings purchased with farmland should be included in the land's acquisition cost for tax purposes. It also touches upon the implications if these saplings are destroyed during construction. The consensus suggests sapling costs are separate from land acquisition and that exemptions under Section 54 of the IT Act apply to residential property, not agricultural plants.

1. No.

2. N.A.

Sir please give some Explanation and reasons. Please 

If you wish to get exemption u/s. 54 of IT act, it is available only if you purchase/construct any House Property within specified time. & not under any agricultural plants.

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