11 August 2008
Rural Agricultural Land purchased on 1st January 2006 for Rs. 4,00,000 This is sold on 1st January 2008 for Rs. 10,00,000 Is Capital Gains attracted. Profit under which head should be taxed,if taxable,give section Or it is not chargeable Plz explain
12 August 2008
only long term capital gain is exempted for the same sales in your case land is purchase on 01/01/06 & sold on 01/01/08 so it is short term capital gain & is charged under regular incme of the same
This is not be treated as capital gain whether long term or short term as the rural agricultural land is specifically excluded from the definition of capital asset. You may kindly refer to that definition.
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