section 54 and 54F

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Guest

hi,

    Let me ask a Question and Ur Answer should be specific one i.e, in pursuance of Income Tax Act and itsrelevant case laws if any.,

[b]Question 1: [/b] A a  resident indian Sells Agricultural Land (LongTErm) [b]outside India [/b]and buys another agricultural land in India. He had fulfilled all the Conditions Said in Section 54. Can he claim exemption?
[b]Question 2:[/b] A a resident or non resident indian sells long term assets in India and buys agiculturral land[b] in Nepal[/b], for this he had fulfilled all the conditions laid by Section 54F. Can he claim exemption in India?

Again reminding you guys Your answer should not be vague one or general itshould be a specific one.
[i]My observations[/i][u][/u] regarding  this is Any Exemption given by the law is with a view to Develop India, so A cannot claim exemptions as specified above. REmember you in SEctions 54 and 54 F there is word Agricultural land but not Indian Agricultural Land. Keepin my views in mind please Reply me.

Replies (6)

Sambu Suresh

CA Job

564 Points Joined March 2007

hi,
answer to your first question

you fulfilled all the required conditions specified under sec 50B. u can get entire capital gain as exemption.

since investment made in agricultural land, even resale of such land will not attract capital gain.

s.suresh
9866198655

Guest

think u have to check da question again sambu. Thanks for ur response

The One

379 Points Joined March 2007

The One Says:

Are you referring to the Indian Income Tax Act/Law? If yes then,

Sec. 2(14) excludes Agricultural land, except land situated within or in area upto 8 kms, from a municipality, municipal corporation, notified area committee, town committee or a cantonment board with population of atleast 10,000

Sec. 54 deals with transfer of residential house.

Sec. 54F deals with proportionate reduction in exemption.

Sec. 50B deals with profit or loss from slump sale.

Your analysis of logic behind exemption is correct but your question is flawed. Is this some kind of a joke?

Guest

hi, thanks 4 ur reply. So ur intention is thati can claim exemption right?

The One

379 Points Joined March 2007

The One Says:

[quote]So ur intention is thati can claim exemption right?[/quote]

My intention? Well I just wanted to clarify certain aspects. Its clear that "rural" agricultural land is excluded from the definition of capital asset and therefore cannot be subject to capital gains tax.