Capital gain query... very urgent!!

Agriculture land is not a capital assets hence no taxable capital gain is arise here hence no question arise for deductibility............

this is an urban agricultural land n therefore a capital asset.

As per my thinking...

For claiming the exemption u/s 54F, Mr. A must invest the long term capital gain in purchase or construction of Residential House therefore, investment in Rural agricultural land is not eligible for exemption. 

Further, Rural agricultural land is not a capital asset, hence no queastion of capital gain arise on its sales.

He invested in Residential house within 2 year after the date of sale of original capital assets, hence it will be eligible for exemption u/s 54F. The exemption will not be allowed if he owned more than one residential house. One house is allowed.

Thanks ! 

Net Sale consideration               =  20,00,000

Indexed Cost of

Acquisition                            =  15,70,000

LTCG                                  =   4,30,000

(-)54B                                 =   3,50,000

(-)54F

{500000*430000/2000000             =     80,000

= 107500(restricted to 80000)}

Taxable LTCG                           =       NIL

but here new rural agri land is sold within 3 years of purchase.

but under sec 54B if asset is sold within 3 years from the date of purchase than CG claimed as exemption shall be reduced from COST OF ASSET of new asset...

but capital asst does nt includ rural agri land..

TO IS CASE ME TAX TREATMENT KYA HOGI..???

my question is can be claim exemption under sec54B if we purchase rural agri land on sale of urban agri land..?????

yeah we can claim the exemption u/s 54B bcoz it says pur of agri land, it cn be rural or urban...

AY 2012 – 13 – For the period ending 31.03.2012

LTC G Computation

Particulars                                                                          Amount                     Amount

Sale Consideration from Sale of Agri Land                                                       2000000

Less : Indexed Cost of Acquisition FMV as on 1.4.81                                         200000

CII for 2012                                                                          785

CII for 1981                                                                          100                        1570000

Long Term Capital Gains                                                                                     430000

Less : Exemption U/s 54 B “New Asset” Acquired on 25.02.2012                      350000

Balance LTCG                                                                                                     80000

 Taxed @ 20%                                                                                                     16000

I agree with Mr. Naresh.

Thanks

@ naresh: gain on sale of rural agri land is exempt...
nd wt abt exemption u/s 54f..???

Excuse.. Since the New Asset is a rural agricultural land, sale of such land does not attract capital gains, and the entire income is tax free.

Regarding 54F, exemption under the section can be availed of when u invest LONG Term Capital Gains.  In your case, in AY 2012 - 13, there is a balance of Rs 80,000 as LTCg if such amount is deposited in Capital Gains Account Deposit Scheme within the due date of filing return, and later utilised for purchase of House Property within a period of 2 years from the date on which the original transfer (initial sale) took place, then you will be eligible to claim exemption under this section. Kindly note that the section allows the claim of exemption, only if the assessee holds one residential house property OTHER than the New Residential Property being purchased on the date of Original Transfer.

I hope this clears your issue.

Warm Regards.