Short term capital gain on agricultural land
This query is : Resolved
19 January 2012
An assessee has purchased an agricultural land in the fy 2011-12. Registry is for 10 lakhs and due in the month of march 2012.. Has sold it to another party, but that registry is in fy 2012-13. the land is sold for 80 lakhs, and the buyer is a company which wants the whole 80 lakhs in pucca, that is in cheque. Now if the assessee accepts 80 lakhs cheque, the amount of capital gain is to high. So what should be done for tax planning so as to reduce or waive off the capital gains on it considering that the assessee is going to register it in the month of march and then the buyer would purchase the land. as of now only sale agreement has been entered. If the agricultural land is beyond 8 kms of muncipality limit, the asset itself is not a capital asset, but what if the land is urban agricultural land?
19 January 2012
If land is urban agriculture land then it will be liable to capital gain tax.
If an assessee buy another agriculture land then exemption u/s54B is available.
If an assessee buy another agriculture land then exemption u/s54B is available.
19 January 2012
can the assessee get the registry done in the name of a company whose main object is to trade in lands. so fr that company it will be stock in trade. and then the company will sell the land. so that will not be a transfer. how about it.
19 January 2012
In my view, the land must be used by the assessee or any of his parent in preceding 2 years for agriculture purpose. 54B will not be applicable here. STCG will arise and tax has to be paid.
.
.
19 January 2012
Sale is also a transfer. In this case it will be Business Income.
Taxation slqbs for STCG and Business Income are not different.
.
If the assessee wants to run this type of business and does not restrict it to this
maiden deal, then formation of such a concern or company may be thought for otherwise not.
.
Lastly, if we see the exemption provisions, these are having intention of promoting Housing Sector, Investment in Bonds, Agriculture etc. Exemption provisions are not meant for taking undue advantage.
Taxation slqbs for STCG and Business Income are not different.
.
If the assessee wants to run this type of business and does not restrict it to this
maiden deal, then formation of such a concern or company may be thought for otherwise not.
.
Lastly, if we see the exemption provisions, these are having intention of promoting Housing Sector, Investment in Bonds, Agriculture etc. Exemption provisions are not meant for taking undue advantage.
20 January 2012
Sir Please refer section 54 B.
exemption will be available if capital gain is short term or long term.
exemption will be available if capital gain is short term or long term.
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?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- Should I report my US salary for January, February, March in Schedule FA?
- 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?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
