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) ?

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).