Question ID :
Interesting case please do write me your opinion.
Mr. X relinquished his right on jully 2020 in his ancestral property by executing sammatti patra/ manyata patra which was sold by his brothers without his consent on 2002 to builder. at that that time the land was agriculture land. now to close the said matter outside the court the builder had agreed to pay consideration of Rs.50 lakh to Mr.X by executing sammati patra/manyata patra for relinquishment of his right in said property. the said agriculture land was converted to residential NA plot on 2016 & now converted to commercial property in 2020.
please guide me regarding this if i considered his relinquishment in agriculture land then it will not come under capital assets & consequently no capital gain.
if i considered it to be capital assets then what should be cost of acquisition for the same i.e ( stamp duty value as on 01/04/2001 of agriculture land rate is to be considered or NA plot value rate or Commercial Plot value rate .
Please guide me that how this transaction would be taxed for income tax.
Also guide me for exemption u/s 54 which can be availed from this transaction.
NADIR D SHAIKH
Jul 23, 2020