22 June 2010
The assessee transferred an agriculture land which was situated about 22km far from the municipal limit of city. He utilised all the money in repaying his arrear loan with bank and for rest of amount he constructed a residential house. Queries are - 1) How the tax treatment and under which section. 2) If exempted then how to be shown in computation of income. Please guide
22 June 2010
IF THAT IS SALE OF AGRICULTURAL LAND WHICH FULFILLS THE CONDITIONS OF AGRICULTURAL LAND AND IS OUTSIDE THE LIMIT OF MC AS PRESCRIBED UNDER THE ACT, THE SAME IS TAX FREE AND IN THE RETURN THE SAME SHALL BE SHOWN UNDER THE COLUMN OF EXEMPT INCOMES AS DIVIDEND IS SHOWN
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