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Capital gain exemptions

Tax queries 130 views 1 replies

MAMTA

Student

98 Points Joined March 2012

Dear Experts,

Which are the exemptions applicable like section 54/54B/54EC/54F in case of capital gain arise on sale of inherited agriculture land?

Does the whole sale amount will be treated as capital gain, as record for puchase of land in not available with seller because land was purchased by seller's father 60-70 years ago. Please Guide.

Thanks in advance.

Replies (1)

take fmv of the property as on 2001 as cost of acquisition. if it's rural agricultural land, it's exempted. if it's Urban agricultural land then purchasing another agricultural land will qualify for 54B or if you purchase or construct residential property it'll qualify for 54F or if deposit it in NHAI, REIC, PFCL or IRFCL then it'll qualify for 54EC