VISHAL GUPTA (MBA-Finance) (145 Points)
16 June 2012I want to know that i purchased a agricultural land before 19 months but MIDC aquire my land & paid the amouunt as per their term & condition. I know that the agricultural land must be used by the assessee in the two years but in my case i dont sale my land but MIDC aquire my land. My question is that can i get the benefit in taxation, please mail me the suggestion.
Vishal Gupta
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 18 June 2012
dear vishal,
if your land was used for agricultural purposes immediately two previous year and such land has been acquired by govt authorities (and the considertion is determined by central govt and RBI) as compalsory acquisition then the amount paid to you as consideration will be exempt from tax u/s 10(37).
cheers
ganesh agarwala
Prashant Chavan
(Business Developer)
(24 Points)
Replied 21 June 2012
Dear sir,
With regards your opinion about acquisition by Govt under compulsory acquisition. Following are my queries:-
1. We are having land which is not agricultural land i.e nothing in done on it. This land has been bought 6 mouths back. We where supposed to start some agricultural activity but we have come to know that under central govt. scheme the state govt of Maharashtra is going to compulsorily acquire the land. In this case what shall be the situation of taxation for us?
Ans u can mail me on my ID all so (saicon4 @ gmail.com)
Thanks
Prashant Chavan
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 21 June 2012
dear prasant,
in that case the compalsory accquisition by CG will be treated as transfer U/S 2(47) and will be taxed. because section 10(37) provides the exemption for agricultrul land situated in a municipality and adjacent 8 kms with a population of more than 10000 provided the land has been used for agricultural purposes in immediately two previous year by the assessee..
cheers
ganesh agarwala
Prashant Chavan
(Business Developer)
(24 Points)
Replied 21 June 2012
Hi Ganesh Agarwala one more Query in my mind if the land is agricultural but there is no income from it, In that case dose it come under section 10(37) for tax exemption?
Thanks,
Prashant chavan
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 22 June 2012
dear prashant,
income is not at all relevent here. all is need to see is whether such land had been used for agricultural purpose or not.
cheers
ganesh agarwala
Prashant Chavan
(Business Developer)
(24 Points)
Replied 22 June 2012
Hi Ganesh, What I understand is that agricultural land are of two types fertile and other is barren. My land is categoriesed under barren & was never used for agricultural purpose. The land is located in a village having population of 2500 & far from nearest municipality.
What shall be the tax implication if acquired compulsory.
Thanks
Prashant chavan
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 23 June 2012
dear prashant,
the criteria is whether it is agricultural land or not. if it is not agricultural land then the same will be not be regarded as capital asset. otherwise normal provision for calculating capital gain will be applicable. Please stress on "agricultural land" its the primary condition.
cheers
ganesh agarwala
CAclubindia
