30 May 2009
The taxable income under the capital gain from sale of agricultural land is Rs. 47,00,000. I do not want to invest it into NABARD bonds or anything like that. What i want instead is to purchase a flat from the same income. Will this be exempted from the tax arising out of capital gain due to sale of agricultural land. I read the sec 54 f. But i fail to get a clear picyure of this case. Can u please help.If not plz suggest me another method to save the tax other than purchase of another agricultural land or Bonds. thank you.
30 May 2009
first check it out is it a capital asset or not, see section 2(14)(3) and if its a long term capital asset than u can claim exemption U/S 54F, in ur case only section 54F is available.
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