Sale of non agriculture land
This query is : Resolved
02 April 2015
Hello friends...
One of my relative has agriculture land in rural area since 1971 of Rs. 1500/-. Now he sold this land after converting from AGRICULTURE LAND to NON AGRICULTURE LAND in 2014-15.
Now which section attract to this transaction and please suggest me better option to reduce capital gain if levied?
One of my relative has agriculture land in rural area since 1971 of Rs. 1500/-. Now he sold this land after converting from AGRICULTURE LAND to NON AGRICULTURE LAND in 2014-15.
Now which section attract to this transaction and please suggest me better option to reduce capital gain if levied?
02 April 2015
when did he convert to non agriculture land
02 April 2015
The conversion of rural agricultural land to non agricultural land will not be taxable as it is exempted u/s 10(1). The sale of non agricultural land will attract Short term capital gain as the holding period is less than 3 years. And you can not get exemption from STCG
Message likes :
1 times
02 April 2015
conversion date is required to find the holding of non agricultural land and its held for less then 36 months hence it will taxed as stcg with no exemption available.
Message likes :
2 times
02 April 2015
Thanx Mohit Sir and Sampat Sir...
But sir, conversion from agriculture to non agriculture is deemed to be transfer? where the owner is a same person?
shall we treat that a long term capital gain as assessee hold that land for more than 3 years?
But sir, conversion from agriculture to non agriculture is deemed to be transfer? where the owner is a same person?
shall we treat that a long term capital gain as assessee hold that land for more than 3 years?
Message likes :
1 times
02 April 2015
no, for transfer refer sec 2(47) there is no transfer as transfer is in relation to owners and not the status of capital asset.
and is if its converted to non agric in 2014-15 then u have sold also in 2014-15 so as non agri it was held for less then 36 months hence it is stcg and not ltcg....
hope all is clear now
and is if its converted to non agric in 2014-15 then u have sold also in 2014-15 so as non agri it was held for less then 36 months hence it is stcg and not ltcg....
hope all is clear now
Message likes :
1 times
03 April 2015
thank u sir, but one last question...
In this case assessee convert from agriculture land to non agriculture and very next day he sale this land to purchaser...
now what is the purchase value or cost of acquisition for stcg?
In this case assessee convert from agriculture land to non agriculture and very next day he sale this land to purchaser...
now what is the purchase value or cost of acquisition for stcg?
03 April 2015
cost of acquisition would be the FMV of the land on the date of conversion
Message likes :
1 times
03 April 2015
there will be.
If the sale consideration is more than the FMV of the asset then profit would be taxable as stcg
If the sale consideration is more than the FMV of the asset then profit would be taxable as stcg
Message likes :
2 times
03 April 2015
Final conclusion is it is taxable as stcg only.
Message likes :
2 times
03 April 2015
ok...thank you.... thank you..very very much sirs...
Message likes :
1 times
03 April 2015
you are welcome hetvi...........
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- RCM INVOICING FROM NOV-2024
- Disallowance of Section 43B(h) to sez units
- GST Regis.
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- REGARDING ACCOUNTING CODE FOR SERVICE TAX PAYMENT
- Redevolpment of bldg in mumbai
- Refund of AY 22-23
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
