In case where the purchase of agricultural land is executed/happend before the date of transfer/sale of the agriculteral land on which capital gain arises, is assessee eligble for expmtion u/s 54b?
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Exemption u/s 54b
Replies (6)
No he can't....... Only land purchased after sale is eligible for exemption u/s 54 B
If someone claims that the he recived the sale consideration in advance and purchased the land out of it, in that case, is he elibile for above exemption? Please quote a case law regarding this scenario, in case any.
Hello
I have agriculture land from my father without any cost and now I have converted this land into commercial property and make shops on this property and sale the shops. Will be there capital gain and what will be the cost of acquisition. What will be the treatment of this situation
I have agriculture land from my father without any cost and now I have converted this land into commercial property and make shops on this property and sale the shops. Will be there capital gain and what will be the cost of acquisition. What will be the treatment of this situation
Yes there will be capital gain. As per section 45(2), if the capital asset is converted into stock in trade,tax shall be charged on the capital gain on the stock in trade transferred. The acquisition cost will as it was in the hand of previous owner i.e. your father. To calculate the capital gain, sale consideration will be take as fair market value of the asset on the day of convesrion into stock in trade.
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