Capital gains
This query is : Resolved
05 February 2012
pls anybody can tell me that capital gain from sale of agricultural land is taxable under which head of income or it shall be included only for the purpose of calculating tax like agricultural income but it is exempt by virtue of Sec 10(1)
06 February 2012
Capital gains arise only on sale of capital assets. In case your agricultural land is a rural agricultural land, then there would not be a capital gains and the capital gains tax. However if the land is a urban agricultural land, then you may need to go through the tax provisions and pay tax accordingly.
06 February 2012
Dear Friend!!
Plz go through Capital Gain Portion of Income Tax Thoroughly.. You will Find That capital Gain Arises on Capital Assets Only. On satisfaction of Certian Criterions You Will Find That Agricultural Land is Not a Capital Assets. you even can Avoid entire Tax on the Basis of Satisfaction of 3 criterions about that Particular Land 1.Agricultural Usage 2. Outside Municaipal Limit beyond notofied Kilometers 3. not a Non-Agricultural Category(e.g. Mines, Diverted Land, Barren Land, Dump Yard etc.) means can be Proven that it was being Used for Agricultural Purpose for Last Certain Years.
CA Manish J, Agrawal 9425251861
Plz go through Capital Gain Portion of Income Tax Thoroughly.. You will Find That capital Gain Arises on Capital Assets Only. On satisfaction of Certian Criterions You Will Find That Agricultural Land is Not a Capital Assets. you even can Avoid entire Tax on the Basis of Satisfaction of 3 criterions about that Particular Land 1.Agricultural Usage 2. Outside Municaipal Limit beyond notofied Kilometers 3. not a Non-Agricultural Category(e.g. Mines, Diverted Land, Barren Land, Dump Yard etc.) means can be Proven that it was being Used for Agricultural Purpose for Last Certain Years.
CA Manish J, Agrawal 9425251861
07 February 2012
taxing on agriculture is not the subject of CG but of SG per our constitution. Capital Asset as defined under Income Tax Act does not consider agriculture land rather it exempts the same provided a few conditions need to be ensured for the purpose of taxing it as captial gains. Where agriculture land is specified/notified per the conditions laid down for taxing means not considering it as agriculture land but a commercial or urban land per intention to be inferred. It is further clarified accordingly that Rural Agriculture land is not a Capital Asset only Urban agricultur land subject to fulfilment of certain conditions may be excluded hence taxable beyond the fulfilment of specified conditions being treated as captial asset.
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