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Capital gain on agricultural land (most urgent)

Naina (Student) (37 Points)

06 December 2016

Please suggest whether cap gain tax will attract or not in case of sale of agricultural land and further the acquisition of new land is made in name of other person of same family, please suggest some case laws

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6 Replies

KAPIL JAIN (Job full time as well as part time) (232 Points)
Replied 06 December 2016

Rural Agriculture land is not capital assets as per act, so not attract capital gain.for urban agriculture land u can avail exemption of sec 54B after satisfied some conditions.

Naina (Student) (37 Points)
Replied 06 December 2016

hey please suggest as it is urban land and so is a cap asset further the new acquired land is in name of spouse of assesse will it be taxable

taufir alam (Article) (73 Points)
Replied 06 December 2016

no it is not a capital asset

CA Aditya Lahoti (Chartered Accountant) (380 Points)
Replied 06 December 2016

No deduction is allowed u/s 54B if assessee purchases agricultural land in the name of son & daughter-in-law.

Case: Kalya vs. CIT (Raj.) Dated: 19/05/2012

Naina (Student) (37 Points)
Replied 16 December 2016

cant it be in favour of assesee , actually one of our client received a notice regarding this issue and now he is required to pay capital gain as he had purchased land in name of his wife , is there any solution to save this?