when is the sales proceed from land exempt from tax

What type of land is it, viz whether it is an agricultural or non agricultural land. Clarify

1.  Can he transfer the land to my name, as a gift?  If so, what is the procedure for the same and what will be the approx. expenditure incurred?  Will there be tax on the same? If so, who will be liable to pay the tax and how much it will amount to?

Ans. Yes he can gift you provided it is his self acquired property. However, if it is an ancestral property then all the legal heirs have to relinquish/gift their share to you. The stamp duty and registration on gift to relatives will be applicable as the case may to the state where the property is situate. There is no Income/gift tax applicable.

Hi,

Actually, this was an agricultural land which was purchased by a developer, who converted the whole property into small sites and had sold the layout to different people.  So, presently it is a residential plot only.  At the time of registration in my father's name, we had even got the NOC for it.

My dad is the purchaser.  It is not an ancestral property.

Then your father can gift it to you since it is self acquired property. Further, you can sell this plot once it is gifted to you & the the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be.

54F. (1)[Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or  [two years] after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,—

           (a)   if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45 ;

           (b)   if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45:

 [Provided that nothing contained in this sub-section shall apply where—

           (a)   the assessee,—

        (i)  owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or

       (ii)  purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or

     (iii)  constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and

           (b)   the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head “Income from house property”.]