Capital gain on sale of agriculture land
This query is : Resolved
26 March 2013
GAIN OF 4 LAKHS ON SALE OF AGRICULTURE LAND..
BUT NOT RE-INVESTED IN ANY OTHER LAND
AS PER SEC 54B ASSET CAN BE PURCHASED WITH IN A PERIOD OF 2 YEARS FROM THE DATE OF TRANSFER,.
HOWEVER WE HAVE TO FILE ITR NOW,NOT YET RE-INVESTED ANY WHERE,
PLEASE LET ME KNOW WHAT ARE THE POSSIBLE WAYS OF SAVING CAPITALGAIN TAX IN THIS CASE
BUT NOT RE-INVESTED IN ANY OTHER LAND
AS PER SEC 54B ASSET CAN BE PURCHASED WITH IN A PERIOD OF 2 YEARS FROM THE DATE OF TRANSFER,.
HOWEVER WE HAVE TO FILE ITR NOW,NOT YET RE-INVESTED ANY WHERE,
PLEASE LET ME KNOW WHAT ARE THE POSSIBLE WAYS OF SAVING CAPITALGAIN TAX IN THIS CASE
26 March 2013
Section 2 excludes Agricultural Land from the definition of CApital Asset subject to certain conditions. You may like to check if the land is subject to capital gains.
If it is chargeable to tax,You can deposit it in a Capital Gains Account Scheme with SBI before the due date of filing return.
If it is chargeable to tax,You can deposit it in a Capital Gains Account Scheme with SBI before the due date of filing return.
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26 March 2013
BUT SIR DUE DATE IS ALREADY OVER,
WE HAVE TO FILE HIS RETURN FOR THE A.Y.2012-13,
WE HAVE TO FILE HIS RETURN FOR THE A.Y.2012-13,
26 March 2013
Please provide is the land is Rural agricultural land or urban land. If it is urban land then now there is no option to you must and should be pay capital gain tax because of you not invested in any property or not deposited in Capital gain scheme account with in due date u/s 139(1).
If it is Rural agricultural land then it is not a capita assest and exempted to capital gain tax.
OM SAI SRI SAI JAI JAI SAI
If it is Rural agricultural land then it is not a capita assest and exempted to capital gain tax.
OM SAI SRI SAI JAI JAI SAI
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26 March 2013
Please provide is the land is Rural agricultural land or urban land. If it is urban land then now there is no option to you must and should be pay capital gain tax because of you not invested in any property or not deposited in Capital gain scheme account with in due date u/s 139(1).
If it is Rural agricultural land then it is not a capita assest and exempted to capital gain tax.
OM SAI SRI SAI JAI JAI SAI
If it is Rural agricultural land then it is not a capita assest and exempted to capital gain tax.
OM SAI SRI SAI JAI JAI SAI
26 March 2013
CAN I HAVE THE MEANING OF
RURAL AGRICULTURAL LAND
RURAL AGRICULTURAL LAND
26 March 2013
Dear One,
In Your Case If Its Urban Land Then Two Option Available.
Either Pay Taxes or Invest Now Before Belated Filling of Return (Though Its Contradictory, But I Will Provide You all References)
it may so happen that the assessee fails to deposit the amount under the Capital Gains Account Scheme before the due date for filing the return of income u/s.139(1), but actually purchases or constructs a new residential house before the due date for filing belated return of income u/s.139(4), i.e., within the stipulated time period of two/three years. The question that arises in such a case is whether the benefit of the exemption u/s.54F can yet be availed of by the assessee in spite of such failure.
In Your Case If Its Urban Land Then Two Option Available.
Either Pay Taxes or Invest Now Before Belated Filling of Return (Though Its Contradictory, But I Will Provide You all References)
it may so happen that the assessee fails to deposit the amount under the Capital Gains Account Scheme before the due date for filing the return of income u/s.139(1), but actually purchases or constructs a new residential house before the due date for filing belated return of income u/s.139(4), i.e., within the stipulated time period of two/three years. The question that arises in such a case is whether the benefit of the exemption u/s.54F can yet be availed of by the assessee in spite of such failure.
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26 March 2013
While the Delhi Bench of the Tribunal has held that the assessee is not entitled to the exemption in such a case, the Bangalore Bench of the Tribunal has held that the assessee can still avail of the benefit of the exemption if such utilisation is before the due date for filing belated return of income u/s.139(4).
Refer Cases of:-
Taranbir Singh Sawhney’s case :
Nipun Mehrotra’s case :
case of Rajesh Kumar Jalan
Refer Cases of:-
Taranbir Singh Sawhney’s case :
Nipun Mehrotra’s case :
case of Rajesh Kumar Jalan
26 March 2013
agricultural land46 in India, not being land situate—
(a) in any area which is comprised within the jurisdiction of a municipality46 (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population46 of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or
(b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette47;
(a) in any area which is comprised within the jurisdiction of a municipality46 (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population46 of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or
(b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette47;
26 March 2013
If the agricultural land Situated in any of the following area then it will we be treated as Urban Agricultural land
1) With in 8 Kms from the local limits of any municipality or corporation
2) Situtate in a village which has a population of more than 10000 as on the first day of the previouse year as per the latest censes report.
If the agricultural land not situtate in any of the above area then it will be treated as Rural agricultural land.
OM SAI SRI SAI JAI JAI SAI
1) With in 8 Kms from the local limits of any municipality or corporation
2) Situtate in a village which has a population of more than 10000 as on the first day of the previouse year as per the latest censes report.
If the agricultural land not situtate in any of the above area then it will be treated as Rural agricultural land.
OM SAI SRI SAI JAI JAI SAI
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26 March 2013
Dear One,
You Can Invest Before 31st March in Your Case.
As held by the Gauhati High Court in the case of Rajesh Kumar Jalan (supra), in construing a beneficial enactment, the view that advances the object of the enactment and serves the purpose must be preferred to the one which obstructs the object and paralyses the purpose of the beneficial enactment. Therefore, even if the investment in the house property has been made before the date of filing of the belated return, the purpose of the legislature is achieved, and it is not appropriate to deny the exemption on the ground that there has been a delay in investment, and accordingly a failure to invest in a bank account under the Capital Gains Account Scheme.
You Can Invest Before 31st March in Your Case.
As held by the Gauhati High Court in the case of Rajesh Kumar Jalan (supra), in construing a beneficial enactment, the view that advances the object of the enactment and serves the purpose must be preferred to the one which obstructs the object and paralyses the purpose of the beneficial enactment. Therefore, even if the investment in the house property has been made before the date of filing of the belated return, the purpose of the legislature is achieved, and it is not appropriate to deny the exemption on the ground that there has been a delay in investment, and accordingly a failure to invest in a bank account under the Capital Gains Account Scheme.
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26 March 2013
PLEASE LET ME KNOW HOW TO SEE LATEST CENCES REPORT TO CONFIRM THAT WHETHER POPULATION EXCEEDS 10000 OR NOT
26 March 2013
Try searching the location in Wikipedia. It generally gives reliable info about census.
26 March 2013
Thank you very much all of you for providing solutions to query,..
finally please correct me if i am wrong,
as per notification 9447, issued by government a list is given for municipal corporations or notified area or what it so called to treat it as capital asset..
so if that agriculture land is not falling any municipality named in the notification by govt?
in that case,
i can assume
that the agriculture land is not capital asset if it is not with in any municipality notified by govt in the said notification,..
even though land is situtated near to municipal area but which is not notified by govt in said notification no. 9447
finally please correct me if i am wrong,
as per notification 9447, issued by government a list is given for municipal corporations or notified area or what it so called to treat it as capital asset..
so if that agriculture land is not falling any municipality named in the notification by govt?
in that case,
i can assume
that the agriculture land is not capital asset if it is not with in any municipality notified by govt in the said notification,..
even though land is situtated near to municipal area but which is not notified by govt in said notification no. 9447
26 March 2013
You can presume so.
26 March 2013
@ca surajlakhotia ,@ca ayushagarval@dintakurti tiruma..
thank you very much all of you for giving valuable suggestions..
thanks for gentlemen discussion..
i have clarity on this now..
thanks,
thank you very much all of you for giving valuable suggestions..
thanks for gentlemen discussion..
i have clarity on this now..
thanks,
29 October 2013
i am 95% clear after going through this discussion.
I have gone through the list mentioned in Notification 9447. The Municipal area is Navsari. In the text (in Notification), it is written as "Areas up to a distance of 8 kms. from the municipal limits in all directions".
Now, my village is 10 km away from Municipal Limit.
I want to sell my agriculture land. Will it be taxable?
I have gone through the list mentioned in Notification 9447. The Municipal area is Navsari. In the text (in Notification), it is written as "Areas up to a distance of 8 kms. from the municipal limits in all directions".
Now, my village is 10 km away from Municipal Limit.
I want to sell my agriculture land. Will it be taxable?
29 October 2013
iT WILL NOT TAXABLE AS IT IS NOT A CAPITAL ASSET AND HENCE TRANSFER WILL NOT ATTRACT CAPITAL GAINS TAX
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