Capital gain from a non agriculture land

This query is : Resolved

Guest

Guest (Querist)

31 July 2012 Dear Seniors,
"I sold a land on 25/05/2011 for Rs.5 lakh which i bought in 1994-95 in Rs.30000/-. After sale I bought another land for Rs.1051000/- on 26/07/2012. Now can I get any exemption in capital gain in this condition?

aadish

aadish (Expert)
Follow

31 July 2012 You should check provisions of sec 54, prima facie u can get exemption cz u acquire asset within 3 years from the date of transfer, but other conditions has to be fulfilled like the asset u transferres should be long term asset, and for the amount of exemption check sec 54,and do calculation on your own, its easy.
See Income tax act.
Hope your query is resolved now.

Guest

Guest (Querist)

31 July 2012 Sir I am too much confused.
I checked Act and sec.54 but my confusion is that i have 2 residential house other than the new land.
Can i claim exemption in such situation?

Upgrade to CAclubindia Pro. Subscribe Now!

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

31 July 2012 1. You can not get exemption against purchase of "New Land" .
.
2. When Agriculture land is purchased against the capital gains arising out of sale of an Agriculture land, then only exemption U/s 54B can be claimed.

.
3. You are having two residential houses so Section 54F would also not be helpful.
.
4. You may invest the amount of capital gains in Capital gain Bonds. Now Refer Section 54 EC.
.

Message likes : 1 times