Capital gain tax on exchange of land

Sec 2(47) -"Transfer" in relation to capital assets, includes :

Sale, exchange or relinquishment of a capital assets or,

Extinguishment of any rights therein or,

any transactions involving the allowing of possession of an immovable property to be taken are retained in part perfomance of a contract of the nature referred to in Sec.53A of the transfer of Property Act 1882;

Exemption in certain cases :

Agricultural land shall be in specified area;

the land was used for agricultural purpose by such HUF or Individual or his parent, for 2 yrs immediately preceding the date of transfer.

Regards,

Keval.Shah

U'r agricultural land is situated in Gurgaon, if agricultural land is situated in municipality or contonment board, and if the population of u'r municipality or contonment board covereage area is or more than 10000, then the transfer even if it is an exchange would amount to the transfer within sec 2(47) of the IT act and gain chargeble to capital Gain tax.

If u'r land does't covered under any municipality or contonment board or population of your municipality/contonment board area is less than 10000  then such exchange would not be chargeable to tax at all. 

If they are chargeable to tax as mentioned above, fair value of agricultural lad received should be the full value of consideration and following should be the cost of acquisition :

1. if the land acquired by ancestors on or after 01.04.1981, then the actual cost of acquisition.

2. if the land acquired by ancestors before 01.04.1981, then the actual cost of acquisition or fair value as on 01.04.1981.

regards,

Manoj

IF IT IS AN RURAL AGRICULTURAL LAND , THEN IT IS NOT A CAPITAL ASSET & DOES NOT ATTRACT ANY CAPITAL GAIN

WHEREAS IT IS AN URBAN AGRICUTURAL LAND AND USED BY THE ASSESSE FOR AGRICULTURAL PURPOSE FOR 2 YRS. IMMEDIATELY PRECCEDING THE DATE OF TRANSFER , THEN HE IS ENTITLED FOR EXEMPTION U/S 54B.

Shri.manoj B. Gavali,

R/sir,

You said in above exchange transction

'If they are chargeable to tax as mentioned above, fair value of agricultural lad received should be the full value of consideration .

In above transction purchased property (i.e.by way of exchange ) again sold  to another  person by way sale for cash consideration (i.e.stamp duty value).In this transction  what would  be the cost of acquisition?

Thanks in advance,

ARK

A suggestion, there are exemptions to "Transfers" U/S 47. https://www.vakilno1.com/bareacts/incometaxact/s47.htm

The first item there is an "Irrevocable" gift. I think you should treat these transfers as irrevocable "Gifts".

Inviting other professional members to chip in with their thoughts (I am not sure if a Gift deed is different from the above deed) .

sir, if it taxable and fair value should be taken but what referance of section should be given to support with the proof

What will the taxation impact if there is a land(Non-agricultural)  within municipal corporation of 21 acre with govt. value of rs. 1.55 cr is exchanged against a land outside municpal corporation area of 100 acre with govt value of rs.28lacs (land outside corporation mentioned above is an agricultural land)