Captial gain on gift of non agricultural land

Hello All,

My mother has purchased an agricultural land in 1990 now it is within 2km of the corporation limits. We are planning to convert the agricultural land to non agricultural land. Will there be any capital gains if my mother gifts part of the land to me after conversion.

Thanks in advance,

Ranjan

 

Replies (3)

Dear Ranjan,

 

Go through the following -

 

There is no specific provision to find out the cost of such converted non-agricultural land. Hence, the cost of agricultural land would be the cost of non-agricultural land.

 

A conjoint reading of sections 2(42A), 47(iii), 49(1) and 55(2) of the Act suggests that, in law, no "transfer" of a "capital asset" is considered to take place on inheritance and succession. The liability for capital gain arises only when the capital asset is actually transferred by the successor. It is only when the ultimate successor transfers the capital asset for a consideration, the capital gains are assessed to tax.

 

As you get the land as gift ( not paying any consideration ) the question of capital gain shall not arise.

Ranjan,

 

Gift received from relative is exempt from tax and the question of capital gain doesnt arises.

 

Hope you get your answer.

Gift received from Relative is exempt from taxation

as for capital gains..as the property is a gift it is not considered as transfer. so No capital gain

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