Hi,
My Client is a Farmer who has agricultural land close to the citylimits. He has transferred the property to his 4 children. Then he has converted the entire land into small plots by taking the necessary permissions. Now he is selling the plots to individuals.
As per my understanding capital gain will arise on sale of each plot in the hands of the respective children. my doubts are:
1. whether Section 54F exemption can be claimed by each child of his.
2. Whether Farmer has any tax liability
3. Cost of aquisition and cost of improvement will be apportioned for each plot based on the Sq Feet. Am i right?
CAclubindia
