27 March 2016
My Parents want to sell Agricultural land in rural area and Invest in Bank FD and Senior citizen saving schemes and other investments(But not buying agricultural land).My question is does sale of Agricultural land attracts income tax liability?
28 March 2016
agricultral land in india is of two types . agricultral land situated out of municiplal limits specified under section 2 (14) is not a cpital assets , hence cap[ital gain does not arise on sale of such land . however urban agricultral land sale attracts capital gain , but the exemption can be claimed from tax by three modes . u/s 54 B by investing in agtricultral land , 54 EC by investing ib bonds and 54 F by investing in resdentail house