Capital Gain
harsh shah (36 Points)
05 June 2018
Can benefit of section 54B,EC & 54F be taken together?
5 Replies
Srikanth Yekkaldevi
(179 Points)
Replied 05 June 2018
54B - Gains from transfer of rural agricultural land can be saved by investing in other agricultural land ( rural or urban ) but there r few conditions to be complied.
54EC - Gains by transfer of long term capital asset can be saved by investing in bonds like NHAI but which should be done within six months post transfer.
54F - Long term capital gains from transfer of any capital asset (other than residential property) can be saved by investing in new residential house property but there r few conditions to be complied under this section.
conclusion - let us assume our asset be rural agricultural land and we got the long term gains from the same where
- we can claim deduction under 54B as we got gains from rural agricultural land which requires to be the same.
- we can claim deduction under 54EC as it says long term capital gains can be saved by investing in specific bonds where our gains are long term (rural agricultural land transfer).
- we can claim deduction 54F as it says gains shall be other than from residential property where our asset is not the same.
so we can claim three deductions at once but rarely one would such thing.
54EC - Gains by transfer of long term capital asset can be saved by investing in bonds like NHAI but which should be done within six months post transfer.
54F - Long term capital gains from transfer of any capital asset (other than residential property) can be saved by investing in new residential house property but there r few conditions to be complied under this section.
conclusion - let us assume our asset be rural agricultural land and we got the long term gains from the same where
- we can claim deduction under 54B as we got gains from rural agricultural land which requires to be the same.
- we can claim deduction under 54EC as it says long term capital gains can be saved by investing in specific bonds where our gains are long term (rural agricultural land transfer).
- we can claim deduction 54F as it says gains shall be other than from residential property where our asset is not the same.
so we can claim three deductions at once but rarely one would such thing.
harsh shah
(36 Points)
Replied 05 June 2018
Thanks sir. I have another doubt..
I have converted my agriculture land into N.A & sold it off to builder.. now can I get exemption u/s 54B?
I have converted my agriculture land into N.A & sold it off to builder.. now can I get exemption u/s 54B?
Srikanth Yekkaldevi
(179 Points)
Replied 05 June 2018
conditions for claiming deduction under 54B
- Land which was sold had been used for agricultural purpose for atleast 2 years 'immediately preceding' to the date of transfer.
- there shall not be any intension to earn profit by the seller through transfer of the same.
if not the same would be taxable.
- Land which was sold had been used for agricultural purpose for atleast 2 years 'immediately preceding' to the date of transfer.
- there shall not be any intension to earn profit by the seller through transfer of the same.
if not the same would be taxable.
Nikhil Kaushik
(Fellow CA)
(86516 Points)
Replied 05 June 2018
once converted into NA, you wont be able to get any benefit related to agricultural land
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