Question ID :
36916
Sec 56(2)(VII) gift of rural agriculture land
A sold his rural agricultural land to B for Rs 45 lacs the circle rate of the land is 65 lacs A & B are not "relative" to each other the question is whether Difference of Rs 20 Lacs ( Circle Rate - Actual Consideration) will be taxed in the hand of B ? or the transaction will be out of purview of 56(2)(VII) as land in question is not a capital assets U/S 2(14) ?
Posted by
CA. SHARMA RAJESH CHANDRA
on
Dec 31, 2018
Filed Under
Income from Other Sources
Answer ID :
76126
56(2)(vii) attracts for agrl land as well. If transaction is on or after 1st April 2017 56(2)(x) (b)(B) ,pre or post amended as the case may be, applies instead of 56(2)(vii).
Posted by
B.CHACKRAPANI WARRIER on
Jan 01, 2019