• 11B e-khatha in a village in Sira taluk, Tumkur District

I have negotiated to purchase agriculture land for growing coconuts where the present owner has constructed a big house in the year 2001 and since then living with family and also paying electricity bills regularly as per consumption. This is not a Grama Thana site in that revenue village. Further learnt from the Village map (Village Naksha) that there are no Grama Thana sites earmarked in that village. All the neighboring farmers have built their own houses in their respective agriculture lands and living there. Thus getting e-swattu 'A' khata meant for houses in Grama Thana is ruled out.in that entire revenue village.

I have sold my BDA allotted 'A' Khata site in Bangalore with a desire to migrate to a village for taking up Agriculture for leading a peaceful life.. Now my problem is that I can not buy agriculture land with Farm House for claiming Capital Gains under Income Tax. I learnt that the present owner on the basis of his previous electricity bills, may apply for Form 11-B Khata from the concerned Panchayat Development Office. 

Please inform whether the present owner can execute sale deed in my favour for sale of that 11-B e-khata residential house before the jurisdictional Sub-registrar to enable me for claiming benefits of Capital Gains?
Asked 6 months ago in Property Law
Religion: Hindu

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7 Answers

No, how could it be possible to present owner to take benefits on your name. If so any how he try to maintain to take benefits on your name. You have the proof of sale deed which is registered in past date.

Ganesh Kadam
Advocate, Pune
10162 Answers
91 Consultations

4.9 on 5.0

An exemption is not available if long-term capital gains (LTCG) from sale of residential property are re-invested in agricultural land. Capital gains tax willbe payable on gains arising from the sale of the residential property. ...

Ajay Sethi
Advocate, Mumbai
75887 Answers
4536 Consultations

5.0 on 5.0

Why you are showing purchase of agriculture land. Better show it purchase of house and surrounding land.

Sale of Agriculture land in rural area is free from capital gain tax.

11b khata is also not a safe purchase.

Yogendra Singh Rajawat
Advocate, Jaipur
19394 Answers
25 Consultations

4.5 on 5.0

Yes he can execute a sale deed

Prashant Nayak
Advocate, Mumbai
19717 Answers
36 Consultations

4.4 on 5.0

Agricultural land cannot be a residential property.

The B khatha is not recognised as a valid khata for the property.

If you do not purchase a house property then you may not be able to claim LTCG benefits or exemptions.

You may better obtain a legal opinion from a local advocate before venturing into the purchase of this property.



T Kalaiselvan
Advocate, Vellore
65860 Answers
860 Consultations

5.0 on 5.0

You can claim exemption under Section 54F by investing the sale proceeds in a residential property either a year before selling the land or two years after the sale.

Mohammed Mujeeb
Advocate, Hyderabad
16538 Answers
11 Consultations

4.5 on 5.0

1. Yes he can execute sales deed in your favour.

2. But for claiming capital gain tax exemption the owner have to apply for khata conversion before execution of sales deed.

Mohit Kapoor
Advocate, Rohtak
8721 Answers
3 Consultations

5.0 on 5.0

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