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Agricultural land sold to buy property in dubai

Anandana N (CA Practice ) (68 Points)

29 September 2013

Hello everyone,

I need to know if i want to sell my agricultural land and buy a property in dubai then is it liable to capital gains tax?

What sections are applicable in this case?

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7 Replies

Mohammed Haneef G H (OWN) (38 Points)
Replied 29 September 2013

CAPITAL GAIN ON SALE OF AGRICULTURAL PROPERTY IS EXEMPT FROM TAX PROVIDED IT SHOULD NOT COME UNDER AREAS LISTED BY THE IT DEPARTMENT

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CA Pallav Singhania (IT System Auditor) (33678 Points)
Replied 29 September 2013

Agricultural Land is exempt from Tax subjected to conditions,

Land qualifies to be agricultural land if it is not situated in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name) or a cantonment board..

And which does not have a population of 10,000 or more according to the last preceding census which has been published before the 1st day of the previous year in which the sale of land takes place, and it is not situated less than eight kilo meters from the local limits of any municipality or a cantonment board.

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Anandana N (CA Practice ) (68 Points)
Replied 29 September 2013

I also want to know can a property be brought in dubai out of the sale proceeds as the law is silent on this matter as well. What section is applicable?