Agrculture land acaquisition by govt and capital gain

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altaf sachora (Querist)
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14 September 2013 my client has purchased agriculture land from a farmer one year ago which has been acaquired by govt. whether capita tax is chargable on this land .

CA Pallav Singhania

CA Pallav Singhania (Expert)
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14 September 2013 No Capital gain Tax on transfer of Agriculture land...

However, such land is an agriculture land and its income subjected to income from agriculture only..

altaf sachora

altaf sachora (Querist)
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14 September 2013 but assessee has purchased this land from a farmer just a year ago. assessee is also farmer. in sec 10(37) exemption is for person who is farming for 2 years . is it so?

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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14 September 2013 Rural Agricultural Land isn't a capital asset..

Land must be rural agricultural land according to IT rules..

Is exempt for Capital gain tax whether short or long term..