Hello friends, welcome to our new episode.
We are not going to talk much here, we are going to talk
about old things.
We are going to have some reading from you.
We have read sections 111A, 112A, 112.
We are going to have some reading from them.
Let's see if we have missed any point.
We have to discuss it with you.
Let me set the page.
Sir, you are wasting our time.
Sir, what to do?
If you want to waste time, you are useless.
You deserve it.
Let me move forward.
Page no. 78. Open page no. 78.
Open page no. 78. I am opening it. You open it too.
Page no.
78. Which page is this?
I have come to page no. 69.
It's okay. Let's open it. It's a matter of 4-5 pages.
This is 111A. Tax on short-term capital gain in respect of
equity shares or units of equity oriented funds.
What did we know in this?
The tax rate was 15% if your short-term capital gain was in
the share market.
Let's see the reading.
Why isn't it closing?
The section provides for a concessional rate of tax of 15%
on the short-term capital gain on transfer of equity shares
or business trusts or equity oriented funds.
But the condition is that securities transaction tax should
be imposed on this transaction.
Securities transaction tax should be imposed on this
transaction.
What is securities transaction tax?
We had covered this point in the chapter of PGVP.
What was it?
Whenever you do a transaction in the stock exchange, a very
small tax of some percentage is imposed on it.
The government charges you.
Sir, does it apply even after income tax?
You take income tax, GST, securities transaction tax.
You have to run the country. You have to bring good days
for the country.
So, it's a small tax. It doesn't affect anyone much.
This tax should be imposed on this transaction.
Only then you will be able to take this 15% benefit.
If you want a 15% benefit, then you have to do a
transaction with a recognised stock exchange.
You have to impose securities transaction tax on it.
Adjustment of unexhausted basic exemption limit.
If you had a basic exemption limit of Rs.
2.5 lakhs and Rs.
2 lakhs of other source income, you can reduce the balance
of Rs.
50,000 from your short-term capital gain.
Balance will be taxable at the rate of 15%.
This benefit is only for residents.
Indian citizens come under the definition of residents.
This benefit is only for them.
Non-residents don't get this benefit.
No deduction under Chapter 6A.
We had discussed that there will be no deduction under
Chapter 6A.
Just a recap.
We are doing a revision.
There is no need to read in detail.
We are doing a revision.
You know everything.
We didn't get a deduction under Chapter 6A from short-term
capital gain.
Yes, we did.
But from other source income.
Don't take benefit from short-term capital gain.
Take benefit from other source income like PGVP, house
property.
Long-term capital gain.
Residents will get taxable at the rate of 20%.
Take benefit from indexation.
Long-term capital gain will be chargeable at the rate of
20%.
Non-corporate will get taxable at the rate of 20%.
Transfer of listed securities and zero coupon bonds.
If LTCG exceeds 10% before indexation, the excess shall be
ignored while computing the tax payable.
Rs. 2.5 lakhs was your exemption limit.
Rs. 2 lakhs was other source income.
Rs. 50,000 is left.
Minus Rs. 50,000 from your long-term capital gain.
And deposit your tax on the balance remaining.
This is what he is saying.
Same repetition of what we were reading.
We have read it.
Are there any listed securities other than units and zero
coupon bonds? 10% or 20%?
Any problem?
Tax on long-term capital in certain assets.
In some assets, it is simple.
Like, there is 112A.
It was share market income.
Long-term capital gain of share market was there.
I got Rs. 900 crores from my grandfather.
What will be the rate of MRF share?
Nothing till Rs. 1 lakh.
10% above Rs. 1 lakh.
We have discussed this point.
But what is the condition?
It is simple.
If equity share is there, STD should be paid on the
acquisition and transfer of such capital asset.
And you can use your un-exhausted basic exemption limit.
Exemption limit is Rs. 2 lakhs.
And your other source income is Rs. 2 lakhs.
Rs. 50,000 is left.
Whatever is your capital gain.
Assume that your capital gain is Rs. 5 lakhs.
Minus Rs. 50,000 from that.
You will get Rs. 4.5 lakhs.
Rs. 10% tax on whatever is above Rs. 1 lakh.
You don't need to give any deduction.
You don't even get rebate of Rs. 87A.
These are some points.
Sir, these are some points.
Let's cover a new topic.
Exemption.
This is a practical question.
Let me show you what it is.
This is an example of Mr. A.
Mr. A is a resident.
And his total income is Rs. 2,40,000.
For this, what should be the exemption limit?
It should be Rs. 2.5 lakhs.
How much is less than Rs.
2.5 lakhs?
Rs. 10,000 is less.
How much is his long-term capital gain?
Rs. 15,000.
I will minus Rs. 10,000 from Rs. 15,000.
After that, Rs. 5,000 is mine.
I will give long-term capital gain on that.
How did he solve?
Rs. 5,000.
Rs. 15,000 is there.
He reduced Rs. 10,000 from Rs. 15,000.
He reduced the unexhausted limit of Rs. 10,000.
How much is left?
Rs. 5,000.
Rs. 5,000 is multiplied by 20%.
The answer is Rs. 1,000.
This is the answer.
These were the topics of tax rate.
It is a very simple thing.
There is no need to think too much.
If you still don't understand this, then don't worry.
Watch the lecture again.
You will understand from there.
Now I want to discuss something with you.
It is the last topic of this chapter.
There are 3-4 sections of the last chapter.
I want to discuss that only.
What are they?
How are they?
What is there?
What is not there?
Come with me.
What were we doing till now in this chapter?
We had calculated the capital gain.
You know the format of capital gain.
Sales.
We had minus the small expenses.
I am coming a little fast.
Because these are already the things which I have told you
many times.
I want to come to the next topic.
For that, I am making a base.
We used to minus the cost of acquisition.
We used to minus the cost of improvement.
What used to come out?
This used to come out.
You can call it STCG.
Or you can call it long term capital gain.
The point was clear till here.
Whatever we have discussed in this chapter, we have
discussed regarding these things.
We have discussed the tax rate on this.
But sir, in some cases, your capital gain is the money of
profit.
But sometimes, in some cases, you don't keep this profit in
your pocket.
Sometimes, you invest this profit.
You invest it somewhere.
For example,
For example, there was a person.
He used to work for 15,000-20,000 rupees.
And after working very hard, he used to save Rs.500 per
month.
He used to save Rs.500 per month.
He used to save.
He went on and on.
He worked for 30-45 years.
He did savings.
And he collected Rs.20-25 lakhs.
After working for 30-40 years.
He collected Rs.20-25 lakhs.
He thought,
I have Rs.20-25 lakhs.
Why not buy a small house?
He bought a small house for Rs.20-25 lakhs.
But his luck was so bad that when he bought the house, in
1-2 years, he lost Rs.100,000.
He lost Rs.100,000.
It was a long time.
And he lost Rs.100,000.
He lost Rs.100,000.
He lost Rs.100,000. The value of the house increased and it
became worth Rs. 40 lakhs. He thought that the house is
getting smaller and God is also kind to me. Why not sell
this house for Rs. 40 lakhs and buy a flat in a good
society.
So that I can spend the remaining years of my retirement in
a good way.
So that person bought that house for Rs. 25 lakhs and sold
it for Rs. 40 lakhs.
Let's leave the long term and short term.
How much will be the capital gain of that house?
Rs. 15 lakhs.
What was the intention behind selling the house for Rs.
40 lakhs?
Did he think that he will spend the money he earned by
selling the house?
No. What was his intention?
That he will buy another house with this money.
When he sold the house for Rs.
40 lakhs, does he have any other house?
Does this person have any other house?
The answer is no.
He doesn't have any other house.
What is his intention? What does he want to do?
Does he want to buy another house?
Is his intention clear?
Is his purpose right?
Yes, absolutely right.
Is he investing Rs.
15 lakhs in gambling?
No. Is he investing it to make his life better?
Is he investing it to buy a good house?
So that he can spend the remaining years of his retirement
in a good way.
So, the capital gain of Rs.
15 lakhs,
in that case, if he gets taxed on the capital gain,
won't he have to spend less money?
If he was in a long term, he would have to spend 20% of his
capital gain.
The loss of Rs. 3 lakhs would have increased.
He had saved Rs. 500 by gambling.
Now, he will directly invest Rs. 3 lakhs in capital gain
tax.
Consider it as a person's helplessness.
He is helpless that he wants to buy a house.
I want to sell my house and buy a house.
I want to sell my existing house and buy a big house.
I don't want to spend that money in any entertainment.
So, what should he do?
What should he do?
He will go to Nirmala Madam and beg her.
He will say, Madam, Madam, Madam, you try to understand my
problem.
I am a poor man.
I have collected money in my life.
I bought a house from that.
Now, I want to sell that house and buy a new house.
Because the family has grown up.
Will you take tax from me on this money?
This is wrong, Madam.
You should take tax from those people who have many
properties.
You leave people like Vijay Mallya.
And you see poor people like us.
What will you get from their Rs.
3 lakhs tax?
Madam said, you are right.
You are absolutely right.
So what shall we give you?
What shall we give you?
We will give you an exemption.
We believe that you have earned this capital gain.
You have earned Rs. 15 lakhs.
And you should be taxed as per income tax act.
Tax Act, but we give you an exemption that if you have
bought this house, I mean if you have sold it, you have
sold it to buy a new house.
You are not using it for any other purpose.
The money that you will get, you will give it to your new
builder.
We will exempt you, whatever be the capital gain.
Minus this and the capital gain in this case
will be zero.
Zero capital gain means no income tax will be imposed on it.
This is the point sir.
The government is giving benefits to those people who are
poor.
Because a house is an essential commodity.
As I say in every lecture or I keep saying it many times
that you cannot survive without food, clothes and a house.
The most important objective of
a person is that every stomach should have food, every body
should have clothes and every person should have a house to
live in.
In this case, although the government is not giving a
house, but the government is motivating the person in a way
that if you sell any asset, if you get your long term
capital gain, if you have a long term capital gain, if you
are selling an asset, then don't waste that money.
Invest that money in buying a house.
You should have a house.
If you have a house, then the government's objective will
be achieved indirectly.
This is the point sir.
Take an exemption for this.
Whoever earns capital gain, he will get an exemption for
this.
If the capital gain is 15 lakhs, then if you have invested
all the money, then you will get an exemption of 15 lakhs.
Your capital gain will be zero.
It will be assumed that whatever house you sold for a noble
cause, that you will get a big flat, a big house.
That is why you will be given an exemption.
What is it? Let's read it in detail. Come with me. I have
explained you the basics.
Come with me.
What does this section say? Section 54 is its name.
And on whom is this section applicable? On any individual
or HUF.
Is it applicable on a company? Is it applicable on a firm?
Is it applicable on a company or a firm? No.
On whom is it applicable? It is applicable on an individual
or HUF.
Which asset are you transferring?
Look, residential house.
You are transferring a residential house.
Building or land appropriate.
Residential house.
Commercial property.
If I have sold a shop for example, if I have sold an
office, will it be covered in this section? Commercial
property is covered here.
What does this section say? It says residential house
property.
If you have sold a house, residential house property, that
too long term.
In case of land and building, what is long term? More than
2 years.
If you have bought a property, you sell it after 3 or 4
years.
It becomes long term.
It is a residential house property.
It is long term.
So the income, if it was taxable in the house property, if
it was chargeable in the house property, then these are the
conditions.
The first condition is, if the capital gain is more than 2
crores, then what will happen? Assume that you sold a
residential house for 4 crores.
You bought it for 1 crore.
You put an indexation of 1.25 crores.
So 4 crores
minus 1.25 crores.
How much did you get? 2.75 crores.
So the capital gain of 2.75 crores is long term.
You have sold a residential house property and earned.
Now what to do about it? How to do it? If the capital gain
exceeds 2 crores, in our case it is 2.75 crores.
So what do you have to do? If you buy a residential house,
within 1 year or after 2 years from
the date of transfer, or get it constructed, within 3 years
from the date of transfer.
If the capital gain is more than 2 crores, then what does
it mean? What is the case?
What is the case? Don't you understand? The case is that
today you sold a house.
This is applicable to everyone.
Today you sold a house and later you bought a new house
from the same house.
So the house that you sold was a long term capital asset.
Long term capital gain was being imposed on it.
But the government says that capital gain is being imposed.
We agree.
But when you are investing, what is its objective? It is a
good objective.
It is an objective to buy a house.
So we will give you an exemption.
Your capital gain will be zero.
There are some conditions for that.
What are the conditions? If the capital gain is more than 2
crores, then the condition is that if you sold your house
today, then you should either buy a new house within a year.
Have you seen the condition? Purchase within 1 year before.
He is talking about 1 year before.
Either buy it here, 1 year before, or buy it 2 years later.
1 year before, or 2 years after the date of transfer.
if you are talking about buying it.
Or if you get it constructed, then it is a 3 year time
period.
1, 2, 3.
If you get it constructed up to this point, or if you buy
it, then you buy it within 2 years.
So whatever capital gain you will have on selling the
house, we will exempt that.
We are discussing how much we will do, but you will be
exempted.
It is a very important section.
You will buy a house sometime in your life.
Whether it is a small house.
Our house is ours, whether it is a mansion or a palace.
Our house is ours.
A house of rent is a house of rent.
You will build your house sometime in your life.
And God will also show you such a day that when you sell a
small house where you live, you will go to a very big house.
Now when you sell it, you will get capital gain.
Because your properties generally stay for long term.
You stay in your house for many years.
Long term capital gain will come.
How to exempt it? This section will teach you.
So, you have cases like this in your home too.
You might be buying a property from your parents.
You might have sold a property and bought another one.
So, just check if you are taking an exemption.
Because I don't think you are taking an exemption.
What you are doing is, you have a 20% tax on the long-term
capital gain, you have deposited that 20% tax to the
government.
You are causing such a big loss.
Let's say, you get a 20 lakh long-term capital gain.
Which you get from the property transactions.
You get a 20 lakh capital gain.
After that, you get a 20% tax on the long-term capital gain.
How much? 4 lakh rupees.
Whereas, you are selling that property and trying to buy
another one.
But, you don't know about the section.
If you wanted, you could have made it 20 lakhs, 20 lakhs
zero.
You wouldn't even get a single rupee tax.
So, what should you give for the 4 lakhs tax?
In a way, you have caused a loss of 4 lakh rupees.
Just because you don't know about the section.
That's why it is said that one can earn money through
knowledge, but one cannot buy knowledge through money.
That's why I am saying, increase your knowledge regarding
these things.
These are practical life things.
When is this?
When the capital gain is more than 2 crores.
But, there can be cases when the capital gain is less than
2 crores.
Let's say, the capital gain is 10-20 lakhs or 30 lakhs.
In that case, what should you do?
Come to that case.
It is said that you sold your house and the capital gain is
up to 2 crores.
In that case, what should you do?
The condition is that you buy 2 house properties.
If you buy 2 house properties, your capital gain will be
exempted.
But, till when should you buy?
When you are selling, like I am selling here, either I
should buy it a year before or after 2 years.
Or, I should construct it after 3 years.
I should construct it within 3 years.
If I am selling it today, should I buy it a year before?
Or, should I buy it within 2 years?
And, if I am constructing it, then my construction should
be completed within 3 years.
Is the time period of 3 years less or more?
Is it more or less?
According to me, it is more.
If you want to construct a house of 100-200 people,
I think 3 years is a long time period.
In that time period, construction of a house is generally
completed.
Government has given you a good time to complete your
construction.
How much exemption will you get?
Sir, how much exemption will you get?
The amount of capital gain you will get.
In that case, how much? 15 lakh rupees.
So, 15 lakh rupees or the amount you have invested,
whichever is lower.
Because, this can also happen.
You are taking an exemption.
Your capital gain is 15 lakh rupees.
And, you already have money to buy another house.
You are getting a loss of 2-4 lakh rupees.
You have to buy a house of 40 lakh rupees.
In that case, you already had 35 lakh rupees.
You had 35 lakh rupees.
You were getting a shortfall of 5 lakh rupees.
You sold the house here.
You sold the house and got a capital gain of 15 lakh rupees.
Out of that, you have invested only 5 lakh rupees.
How much exemption should you get by law?
You have to tell by law.
Before giving the exemption, think about the purpose.
The purpose was that the government was motivating the
people to buy as many houses as possible.
To go to their homes.
Because of this, you had given the entire amount of 15 lakh
rupees.
But, are you now using the entire amount of 15 lakh rupees?
Are you now using the entire amount of 15 lakh rupees?
Out of that, you have used only 5 lakh rupees.
So, how much maximum exemption should you get? 5 lakh
rupees.
Capital gain or the amount invested, whichever is lower.
Is this the point, sir?
Quantum of exemption.
See, how much should you get?
Cost of the new house.
If it is more than the long term capital gain, then the
entire capital gain will be exempted.
Means, it is a house worth 40 lakhs.
And how much was my long term capital gain in that case?
It was a house worth 40 lakhs.
How much was my long term capital gain?
Tell me quickly.
Was it worth 15 lakhs?
Cost of the new house? 40 lakhs.
And was it more than the long term capital gain?
Was it 15 lakhs?
Yes.
And did you invest the entire amount?
Yes.
So, you will get the exemption of 15 lakhs.
Your entire capital gain will be saved.
What is the second case?
Is the cost of the new house less than the long term
capital gain?
Yes, if it is, then the long term capital gain to the
extent of cost is exempt.
Means, my long term capital gain was 15 lakhs.
And I am buying a house worth 10 lakhs.
I am buying a house worth 10 lakhs.
In this case, I was buying more.
But in this case, I am buying less.
In that case, how much will be exempt?
As much as the cost of this house.
Exemption of 10 lakhs will be done.
You are not stealing, right?
The government is also looking at how much you are doing.
If you have invested the entire capital gain, then fine,
you will get the exemption of all.
But the amount you have invested, if you have invested less
money, then the amount you have invested, the more
exemption you will get.
Capital gain or amount invested, whichever is less.
And there is one more condition.
If you have transferred a new asset before 3 years, from
the date of acquisition or construction.
You bought a new house.
The old house was sold.
You got the new capital gain exempted.
Now, suppose you transfer your new house before 3 years.
You sell it before 3 years.
Means, if you have bought it today, then you sold it within
3 years.
So, what will happen in that case?
Cost of the asset will be reduced by the capital gain
exempt earlier for computing the capital gain.
Means, he is trying to say, did you buy a house worth 40
lakhs?
Yes, I did.
Now, suppose in future, when you sell the new house, then
don't take the cost of acquisition of that house as 40
lakhs.
We will reduce the cost of acquisition of that house.
Your capital gain was 15 lakhs, right?
We will reduce it from here.
And it will be assumed that the cost of acquisition of the
new house is 25 lakhs.
Sir, what is the benefit and what is the loss?
The loss will be that, suppose in future, you sell the
house worth 40 lakhs for 80 lakhs.
Generally, if you talk about the normal case, if you sell
it for 80 lakhs and reduce it by 40 lakhs, then the capital
gain was 40 lakhs.
The capital gain was 40 lakhs.
But now, what is happening?
You are selling it for 80 lakhs and the government is
asking you to buy it for 25 lakhs.
So, what will be the capital gain now? 55 lakhs.
Now, the capital gain that was exempted from you, it has
been added to you.
From the cost of your new asset, the old capital gain that
was exempted from you, we will reduce it.
We will reduce it so that your new long-term capital gain
is more.
Look at this.
Director sir, focus here.
Zoom it.
Zoom it completely.
In the general case, if you sell it for 80 lakhs and reduce
it by 40 lakhs, then the capital gain was 40 lakhs.
But now, when your old capital gain has reduced from your
cost,
let's say your cost is 25 lakhs.
In that case, your capital gain will be 55 lakhs.
Look at it this way.
Whether you hold it from here or from there, you should
have invested 15 lakhs of capital gain.
At that time, you had invested 15 lakhs and exempted it.
Now, you are not satisfying the condition, so we have
basically added 15 lakhs here.
Instead of 40 lakhs, your capital gain is 55 lakhs.
Here, here.
Look at it.
This is the point, sir.
This is the point.
Just absorb it.
I will move forward only then.
Okay, sir.
Shall we move ahead?
Shall we? Is the point clear?
Shall we move on to the next section?
What is the next section? 54B.
54B.
What does 54B say?
It also talks about exemption.
If you have a long-term capital gain,
then you have to give a long-term exemption.
If you have a short-term capital gain, if you have a
long-term or short-term capital gain, in this case, we are
talking about long-term and short-term.
First, tell me, did you understand the previous section?
What did you say? Shall I get it revised?
I will get it revised.
Let me get it revised.
It was nothing.
You had a house property.
It was long-term.
You had held it for more than two years.
You want to sell that house and buy a new one.
So, we will exempt the capital gain of the old house if you
have used the capital gain money to buy a new house.
But, keep in mind,
do not sell the new house before three years.
If you sell it,
the previous exemption will be deducted from your cost.
And how long do you have to buy this new house?
When you sell the old house, buy it within two years.
When you sell it, buy it one year earlier.
Or if you are getting construction done, then get it done
within three years.
This was the point.
Is this point clear?
I will leave now.
Do I have your permission?
Come next.
Section 54B.
In 54B, we cover both types of capital gains.
Both short-term and long-term.
In 54B, we were covering only long-term.
But here, we will cover both long-term and short-term.
And what is the topic?
What does the section say?
Section says that if you have any urban agricultural land.
What did I say?
I said urban agricultural land.
What do you understand from agricultural land?
Farming.
Farming has been abolished.
And what do you understand from urban?
Urban.
If I have a farm in a city.
Usually, farms are found in villages.
But sometimes, farms are also found on the borders of
cities.
Farms are also found on the borders.
For example, Delhi is a city.
If you go behind Akshardham in Delhi, you will find a lot
of farms.
You will find a lot of farms.
Meerut is a city.
If you go behind Meerut, you will find a lot of farms.
Faridabad, Ghaziabad, there are places like these.
Where you have a city, but you will also find farms in the
city.
Sir, who will mess with farmers?
In future, a farmer who does farming, he has urban
agricultural land.
He has urban agricultural land.
And he sells his urban agricultural land.
On top of that, a short-term or long-term capital, we will
exempt that.
What do you buy?
You buy agricultural land.
By selling urban agricultural land, buy a new agricultural
land.
Where do you buy?
In urban or rural?
Buy anywhere, sir.
Buy anywhere.
And buy within 2 years.
When you sell, buy within 2 years.
Sir, why isn't there a construction limit?
Why isn't there a construction limit?
In that, you were telling me, if you are selling today,
then 1 year before or after 2 years.
Or, if you are doing construction, then after 3 years.
You can buy for 3 years.
Why isn't there a construction limit for 3 years here?
You fool.
Tell me one thing.
Can you ever construct a farm?
I can construct a house.
How can I construct a farm?
Either I will buy or sell a farm.
Or I will farm on it.
How can I construct a farm?
Will I use bricks and bricks to construct a farm?
What are you saying?
If I have sold a farm today,
I have sold urban agricultural land.
Within 2 years, buy a new agricultural land.
The capital gain will be exempted.
Assume that the capital gain was Rs. 15 lakhs.
And you bought a new land worth Rs. 10 lakhs.
So, how much should be exempted?
Tell me properly.
Rs. 10 lakhs.
Because you didn't use all the capital gain.
Yes, if you use all the capital gain, the capital gain will
be exempted.
Sir, how cautiously the government works in the case of
farmers.
Do you want to see this?
Do you want to understand this?
The government never messes with the farmers.
They even took back the farmer's bill.
Farmers are a very big part of our country.
If there are no farmers, we won't even be able to eat food.
The grains that we eat, are grown by our farmers.
Whenever we find a farmer, or a farmer's brother, or a
farmer's soldier, we must shake hands with them.
We must shake hands with them.
We must not bow our heads in front of them.
Because these are only two people, farmers and soldiers,
because of whom this country runs.
Otherwise, this country would have been buried long ago.
That is why we say,
Jai Jawan, Jai Kisan.
Come on, come to the section.
Don't get too emotional.
I keep talking like this.
What is it?
Who is the eligible assessee?
Is it an individual or an HUF?
And what is the transfer of?
It is of urban agricultural land.
And the second condition is, this agricultural land, either
you are using it yourself, or your parents have been using
it for the past two years.
If you sell the land today, then for the past two years,
you are using it for agricultural purposes.
And if you want to buy a new land, be it urban or rural,
you have to buy it within two years.
How much exemption will you get?
Tell me the quantum.
If the cost of the new agricultural land is, suppose the
capital gain of Rs.
15 lakhs had come out, and the amount is the same as in the
previous example.
Suppose the capital gain of Rs.
15 lakhs was Rs.
40 lakhs.
The cost of the new agricultural land is Rs. 40 lakhs.
The capital gain is Rs. 15 lakhs.
Is it more than Rs.
15 lakhs?
Yes. The entire capital gain is exempt.
The entire Rs.
15 lakhs will be exempted in my hands.
But if the cost of the new agricultural land is less than
the capital gain, that is, if the new agricultural land is
Rs.
10 lakhs and the capital gain is Rs.
15 lakhs, how much exemption will you get in that case?
The capital gain to the extent of new agricultural land is
exempt.
Another condition is that do not sell the new agricultural
land within three years from the date of acquisition.
What will happen if you sell it?
The same thing will happen which is God's will.
What was God's will?
The cost of the land will be reduced by capital gain
exempted earlier.
If you buy a land worth Rs.
40 lakhs, and if you go to sell it, the capital gain of Rs.
15 lakhs will be reduced.
The cost of acquisition will be Rs. 25 lakhs.
The capital gain was exempted.
Do not sell the new agricultural land within three years.
If you sell it, the cost of acquisition will be reduced.
What is the second case?
Section 54-B.
You are selling urban agricultural land.
Urban land.
You are selling urban land.
The condition is that you have to cultivate the land for
two years.
Either you or your parents have cultivated the land for two
years.
Now you are selling it.
What are you doing by selling it?
Are you buying a Fortuner car?
Are you building a palace by selling it?
What are you doing by selling it?
Are you opening a film production company by selling it?
What are you doing?
Sir, I have not done anything by selling it.
Have you invested in crypto?
No sir, I have not done anything like that.
I have bought an agricultural land by selling it.
In that case, the capital gain you have earned will be
exempted.
Buy the land within two years.
This is the point.