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Capital gain

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SALEEM ANSARI

30 Points Posted on 03 January 2021

one of my client have 2 land in municipality area
one land is agricultural land and second is residential land.
assessee has sold out the one land
and he wants to construct business godown on second land.
can he avail the benifit of sections 54

Replies (3)

Quick Summary

This discussion explores whether capital gains tax exemptions under Section 54 can be claimed when selling agricultural or residential land. While Section 10(37) may offer relief on agricultural land sales, exemptions under Section 54B and 54F are typically tied to reinvesting in other agricultural land or a residential house, respectively. Constructing a business godown on the second plot means these specific exemptions are unlikely to apply.

Sumit Shukla

265 Points Posted on 03 January 2021

You can claim exemption under sec 10(37) on slae I'd

Smit Shah

280 Points Posted on 03 January 2021

If you earn capital gain on sale of agriculture land then exemption can not be avail as exemption is only availed on purchase of another agriculture land i.e.as per section 54B

if you sale another land than exemption can be avail in 54F provided you purchase or constructed RESIDENTIAL HOUSE but as he want to construct godown no exemption under that section can be claimed