Capital gain

Tax queries 494 views 1 replies

Dear Friends,

I have a query related to Capital gain and need advice from you all , appreciate if somebody can refer to any case laws supporting your answer.

--->  NRI assessee buys an  agriculture land (not within 8 Km limit of municipality, population less than 10,000 etc)  in India 4 years back for INR 800,000 and is kept ideal (no activity done on that) now this land is being sold to Govt (Housing board society) for INR 50,00,000 .

Queries are -

1. Is this land be treated as capital assets , although the land opposite  to it is declared as SEZ ?

2. Can exemption under section 54F be claimed if NRI wants to repartiate this money outside India to buy a house outside India, since words" IN INDIA" is missing in the exemption section and it can be safely claimed that since assessee is NRI obviously he will stay outside India so house to be purchased outside India only.?

3 What are the RBI/ FEMA regulation regarding repatriation of this money outside India. ?

thanks in advance for your replies.

regards

Amit

Replies (1)

Hi,
Since this is an agricultural land, it will not be treated as a capital asset, (also as per your information, it is not in the SEZ).
And yes, Section 54F applies to ANY residential house, even outside India.


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