agricultural land sold and repayment made to housing loan a/c

Querist : Anonymous (Querist) 03 December 2010 This query is : Resolved
Sir, i am confused that whether the amount received from sale of agricultural land [long term capital gain] and transferred to housing loan account could be taxable or non taxable?

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aman kumar (Expert) 03 December 2010
WHAT IS THE MEANING OF transferred to housing loan account ??

R.Ramachandran (Expert) 03 December 2010
In terms of Section 54B, in order to escape from income tax, the capital gain arising out of sale of agricultural land has to be utilised only for the purpose of purchase of a new agricultural land. Any other utilisation of the capital gain arising out of sale of agricultural land (say in repaying the housing loan, or acquiring a new house etc.) will not qualify for exemption from income-tax.

s.subramanian (Expert) 03 December 2010
I agree with Mr.Ramachandran.

Advocate. Arunagiri (Expert) 03 December 2010
Well advised by Mr.Ramachandran.

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