Query regarding immovable property/land Moor

[Jasbir Uppal]

Dear Professionals,

Kindly give your valuable opinion and judgments on the following query.

My query is that as per sec 54 of Income Tax Act, 1961 'A' person has purchased immovable property from 'B' and the status of property/land is Moor. A moor is an area of high open ground covered mainly with rough grass and heather, waste land/barren land. How will the calculation of capital gain will be applicable as per section 54 of Income Tax Act, 1961.

Regards

J S Uppal

[Lav Prajapati]

In this case

Capital gain will be compute as per section 48 of Income tax Act

Tax on capital gain will be compute as per section 112 of Income Tax Act.

AI Summary

Capital gain computation follows section 48 with tax liability under section 112 for transactions involving moor land. Query whether the capital gains exemption under section 54 applies when purchased immovable property is a moor. The adviser states capital gains are to be computed under section 48 and tax on those gains is to be computed under section 112.