Deduction of 54B and Conversion of Land
hitesh
(Querist) 24 November 2010
This query is : Resolved
I had Agricultural land within 8 Kilometers of municipal of Amroha & there found no single buyer for that so we sold that in plots.
Whether it will amount to Conversion of Capital property under section 45(2) if Yes what will be the conversion cost taken for PGBP?
Further, Whether Agricultural land Purchased for Section 54B should be Rural Agricultural Land or should any Agricultural land (whether Rural or Urban)
And whether selling of Ageicultural Land as plot will attract any other law, or it may attract any penalty by the muncipal corporation of amroha
soumitra basu
(Expert) 24 November 2010
Please note that all agricultural land within 8 kilometers shall not attract capital gain tax. Only Agricultural Land situated within 8 kilometers and notified by the CBDT for Capital Gain taxation will attract capital gain tax.
Your other question remain unanswered.
