Capital Gains Exemption on purchase of Agricultural Land

Share
Share This Thread
  1. Rajendra T N

    Rajendra T N New Member

    I would like to know on:

    I have a residential plot which was purchased in the year 2001 in my wife's name. I am planning to sell this and buy agricultural land with or without house at kerala and settledown there. I jointly own a flat with my wife and one more is under construction, both at bangalore. pls guide on capital gain implication on the proceeds of this sale of plot.

    Thanks n Regds,

    Rajendran
     
  2. rudrabose

    rudrabose Active Member

    As you are selling a plot, Section 54F would be applicable in this case for claiming capital gains exemption.

    Under Section 54F, exemption is allowed only if new asset is a Residential Property. Therefore, exemption for Agricultural Land will not be allowed.

    Even if there is a house constructed on the new property, exemption under Section 54F is allowed provided the buyer does not own more than 1 residential house property apart from the one he is purchasing.

    As you already have more than 1 house property - therefore you cant claim exemption under Section 54F in any of the cases mentioned above.
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
AGRI LAND SALE – CAPITAL GAINS EXEMPTION Income Tax Jul 12, 2018
Release of Funds from Capital gains account Income Tax Jun 7, 2018
Capital Gains tax Income Tax Feb 12, 2018
Capital gains bonds investment in the name of deceased person Income Tax Feb 9, 2018
CAPITAL GAINS ON SALE OF PROPERTY Income Tax Jan 6, 2018