1. The sale of rural agricultural land is not taxable because it does not come under definition of capital asset u/s 2(14) .So it is not taxable ....
2. The sale of urban agricultural land is taxable because it does not come under definition of capital asset u/s 2(14).So it is taxable ....
3. if urban agricultural land has been held less than 36 months then in that case ....it should be short capital gain otherwise it will be long term capital gain ..........
21 November 2012
Dear sir , As per accounts you should show as a profit from the sale of agricultural land but as there is no tax implications therefore it will not come in the income tax return ..............
CAclubindia
