Agricultural land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 SIR,
I HAD SOLD A AGRICULTURE LAND SITUATED IN RURAL AREA, PANCHAYAT POPULATION 4000 BUT 2 KM FROM MUNICIPALITY LIMIT, THERE WAS A SMALL HOUSE SITUATED IN THE LAND WHAT WILL BE THE TAX POSITION
1. IF TAXABLE WHETHER INDEXATION APPLICABLE
2 I USED TO RESIDE THEIR AND DO FARMING ALSO
3 WHAT WIIL BE THE TAX POSITION

CA Mohit Bansal

CA Mohit Bansal (Expert)
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28 May 2014 Please provide quantitative data as tax would be applicable in your case

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 SIR,
WHAT IS AGRICULTURAL LAND AS PER INCOME TAX ACT.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 SIR,
FIRST YOU TELL ME WHAT IS AGRICULTURAL LAND AS PER INCOME TAX ACT.

CA Mohit Bansal

CA Mohit Bansal (Expert)
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28 May 2014 The land situated beyond 8kms of municipality or contonement board

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 WHAT ABOUT THE POPULATION IN THAT AREA

CA Mohit Bansal

CA Mohit Bansal (Expert)
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28 May 2014 Population is irrelevant for determining capital gains

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2014 Section 2(14) of the Income Tax Act, 1961 defines Capital Asset. This section provides that capital asset does not include agricultural land in India. However, the following agricultural land are considered as capital asset:-
(a) agricultural land situated within the jurisdiction of municipality or cantonment board and having a population of 10,000 or more
(b) agricultural land situated within the following distance from the local limits of Municipality or Cantonment Board to be measured aerially.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2014 Distance of agricultural land from Municipality or Cantonment Board to be measured aerially
Population of the Area
Upto 2 kilometres
Between 10,001 to 1,00,000
Upto 6 kilometres
Between 1,00,001 to 10,00,000
Upto 8 kilometres
Exceeding 10,00,000