Capital gain tax

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please any one kinldy clarify whether capital gain tax is payable on award amount recieved from Government on the land acuisitions. what is provision of law if the land situate with in 10 kms of boundary from city limits.

 

Replies (2)

Section 10(37), grants exemption from payment of capital gains on transfer of agricultural land under certain circumstances. Section 10(37) reads as under:

in the case of an assessee, being an individual or a Hindu undivided family, any income chargeable under the head Capital gains arising from the transfer of agricultural land, where-

(i) such land is situate in any area referred to in item (a) or item (b) of sub-clause (iii) of clause (14) of section 2;

(ii) such land, during the period of two years immediately preceding the date of transfer, was being used for agricultural purposes by such Hindu undivided family or individual or a parent of his;

(iii) such transfer is by way of compulsory acquisition under any law, or a transfer the consideration for which is determined or approved by the Central Government or the Reserve Bank of India;

(iv) such income has arisen from the compensation or consideration for such transfer received by such assessee on or after the 1st day of April, 2004.

Thank you Mr.Ramkrishna Kamat for you very good reply. My friend had purchased a housing site measuring 60 ft X 40 ft during 1995 for Rs. 19000/- He purchsed the site in his father's name his father died leaving behind 4 sons, 3 sons have relinquished their rights over the in favour of my friend, and he sold for Rs 8.00 lakhs during 2013-14 and he is not assessee only salaried tax payer. he has recieved  SMS from income tax department to file return. what is his tax liability on capital tax gains please clarify 

Thank you

R.S.K.Singh 

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