Search Results For: Sale of agricultural land


QUERY: As per S. 56(2)(vii)(b), when an individual or HUF receives, on or after 1.10.2009, any immovable property without consideration, the stamp duty value of which exceeds Rs. 50,000, the stamp duty value of such property is chargeable to tax u/s. 56(2)(vii)(b). Agricultural land {which is not capital asset u/s. 2(14)} is immovable property. Therefore, is stamp duty value of agricultural land received {which land is admittedly not a capital asset u/s 2(14)} without consideration chargeable under this clause? This question arises since 2nd proviso to S. 56(2)(vii) inter alia provides that property received from any relative is not covered by this clause. The term ‘property’ is defined in Explanation (d) to S. 56(2)(vii) to mean the following capital asset of the assessee, namely, (i) immovable property being land or building or both. Thus, property is defined to mean capital asset namely immovable property being land or building or both but 56(2)(vii)(b) does not use the word ‘property’ but directly makes a reference to immovable property. The question is whether the term ‘capital asset’ used in Explanation (d) should be understood as it is defined in S. 2(14) or should it be understood to mean something which is not stock-in-trade?
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Yes, stamp duty value of agricultural land received without consideration exceeding Rs. 50,000/- is chargeable u/s. 56(2)(vii) of the Act except property received from relatives. The explanation (d) to the section

QUERY: The piece of agricultural land owned by the assessees is surrendered to Govt. urban land improvement authorities under land for land scheme. The plot is allotted after 2-3 years. What should be the date of acquisition for such plot received on surrender, for treatment of capital gain at the time of sale
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For the purpose of capital gain at the time of sale of allotted plot, the date of allotment of plot would be considered as date of acquisition.

QUERY: An assessee had purchased agricultural land in 1991 which was subsequently surrendered to the local authority for their development scheme in 2004. In 2012 he was allotted a plot of land for the agricultural land surrendered in 2004. What should be the date of acquisition of plot of land allotted by the local authority in 2012 and sold in 2013?
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The date of acquisition of plot of land allotted by the local authority on surrender of agricultural land would be 2012, as section 49 r.w.s. 2(42A) of the Act would not be applicable to such

QUERY: Mr. ‘A’ is filing his Income Tax Return regularly. He acquired an agricultural land by way of partition effected by his father on 29-7-2007.

The partition is effected by father of ‘A’ and as per said partition, the property is partitioned among ‘A’ and his brother ‘B’.

Actually, father of ‘A’ had acquired this agricultural land by way of a partition deed effected by his grandfather on 21-12-1976 and further grand-father had acquired this property by way of gift alongwith father of ‘A’, Grandmother of ‘A’ and his brother ‘C’, from the father-in-law of grandfather on 4-5-1953. In short this property is gifted by father-in-law of grandfather to all of them.

In the circumstances, your valuable opinion alongwith case laws is solicited in the matter as to whether finally property fell in the hands of ‘A’ is his individual property or property of his H.U.F.

Now, this property is compulsorily acquired by the Government for constructing offices on said property for functioning the Governmental works.

In lieu of acquisition of this property, Mr. ‘A’ had received compensation from Government by way of consent agreement entered into with the Government.

Mr. ‘A’ received compensation, which consists of cost of land, solatium and compensation for loss caused to ‘A’. The loss is calculated by the Government from the date of notification to the date of Award by the Authority.

The above amount of cost of land, solatium and compensation for loss as mentioned above, have been received by way of consent Award executed between ‘A’ and the State Government.

Further as mentioned earlier, the property is an agricultural land situated in a village, which is beyond 8 Kms. from Muncipal Area and the same has been compulsorily acquired by Government for constructing office buildings etc. for the purpose of Government work.

In view of this, whether the compensation so received in the nature of cost of land, solatium and compensation for loss, is chargeable to Income Tax or not?
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As per the query, the father-in-law of the grandfather had gifted property for the benefit of the grandfather alongwith father of ‘A’, grandmother of ‘A’ and his brother ‘C’ on May 04, 1953. Thus, it can be presumed that the property was gifted to the HUF of the grandfather, if intention of the donor was to gift the property for the benefit of HUF of grandfather of ‘A’. (See C. M. Arunachala vs. Muruganatha – AIR 1953 SC 445).