22 March 2012
An Rural agricultural is convert into Number of Plots and sold to various person for their construction purpose . We can set off the capital gain gain By Purchasing another new agricultural land and we can claim exemption under section sec 54 B for it ..
22 March 2012
1)The rural agricultural land referred in the query is a 'capital asset' or not has to be checked. If it is a capital asset, then only question of 54B arises. 2) Whether the gain on sale of agricultural land converted into house plots is capital gain or business income is a vexed issue. My understanding is ,it is a business income and,therefore, no need to think about 54B.
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