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Capital gain

S. Jamali (Director Roshan Akauntax Limited) (70 Points)

10 January 2013

IF AN ASSESSEE RECEIVES AN AMOUNT FOR SALE CONSIDERATION OF AGRICULTURE LAND ON 31/03/2012 WITH OUT SALE AGREEMNT AND REGISTERD THE SAME ON OCT 2012 THROUGH REGISTERD SALE DEED WHETHER CAPITAL GAIN ARRISES ON A.Y. 12-13 OR A.Y. 13-14 if TAXABLE IN A.Y. 2012-13 THAN WHY ? PLEASE GIVE REASONS

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4 Replies

Bunty (student) (53 Points)
Replied 10 January 2013

I think.. no captial gain arises... as der is no transfer of capital by the agent ,it may fall in income from other sourse catagory..

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CA Krishna Chaitanya M (Chartered Accountant) (463 Points)
Replied 10 January 2013

taxable in the A.Y 2012-13 only if it is urban agricultural land ( situated within 8 km away from local limits of muncipality or contonment board)

in case of rural agricultural land transfer is exempt

Nikhil Gupta (Student) (49 Points)
Replied 10 January 2013

if it is rural agricultural land then it is exempt from taxation

if it is urban agricultural land then it will be taxable in AY 12-13 as capital gain arises in the year in which the possession has been transferred to other party.

Nikhil Kaushik (Fellow CA) (86525 Points)
Replied 12 January 2013

Originally posted by : Roshan Akauntax Pvt. Ltd.
	IF AN ASSESSEE RECEIVES AN AMOUNT FOR SALE CONSIDERATION OF AGRICULTURE LAND ON 31/03/2012 WITH OUT SALE AGREEMNT AND REGISTERD THE SAME ON OCT 2012 THROUGH REGISTERD SALE DEED WHETHER CAPITAL GAIN ARRISES ON A.Y. 12-13 OR A.Y. 13-14 if TAXABLE IN A.Y. 2012-13 THAN WHY ? PLEASE GIVE REASONS

The incidence of taxability shall depend on whether the possession of the land was done on 31 March 2012 or after that. In case the possession was handed over after 31 March 2012, the consideration received on 31 March 2012 can be considered as advance received against sale agreement signed in October 2012.

As far as the exemption from Capital gains on account of asset transferred being an agricultural land, kindly make sure that section 54B is covered.