There is compulsory acquistion of AGRICULTURE LAND by a local GOVT.AUTHORITY(BDA) and consideration is paid in kind means that considertion is to another area of Land(PLOT) elsewhere.
THEN WHAT WILL BE AFFECT ON CAPITAL GAIN
I KNOW CAPITAL GAIN IN AGRICULTURE LAND IS EXEMPT, THOUGH THERE IS CONSIDERATION IS PAID IN KIND ???
NEED TAX PLANNIG ..
as long as the land is agriculture land within the definition of Section 2(1A)
i mean to say that as long as the land is agriculture land, no capital gains tax is applicable. it is immaterial whether you received consideration in kind or in cash.
how would it be more expensive?
Dear Suraj, that is only if you buy another agriculture land within 2 years under section 54B
You are getting agriculature land under consideration from govt & you are not purchasing the same...Your Agriculture land is exempt so what ever you are getting for that land is also exempt..if its not so than no one agree to pay tax on the same on receipt of consideration...
@ suraj. Yup I read it in respect to 54B. I didn't consider 10(37)!!!
but sec10(37) or sec 54B not described in what way consideration is recieved ...?
then what i need to suppose ??
as we said earlier it doesnt matter how the consideration is received. Anyways, in your case there is no tax liability.
ok Sir.. last querry
if i suppose it like transfer. it will be exempt..
but when i will sell it the cost of acquisition will be "0" and amount recieved will be taxable ??
then the tax liablity occur ??
CAclubindia
