23 February 2009
I am planning to sell my rural agricultural land for Rs. 24 lacs. The land was acquired during 95-96 for Rs. 80000. What will be my tax liabilty on the sale proceeds? What shall i do to get Tax exemption?
23 February 2009
Rural Agricultural Land is not a capital asset as per sec.2(14). Sale thus will not attract capital gains. But be sure it should be agricultural merely as per land records. It must be agricultural as per income tax act.
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