20 January 2018
If assessee receives agriculture land in inheritance and sold the same in small pieces of plot in different dates, Then plz tell this transaction of sale is sale of Agriculture land or not.
21 January 2018
Sale of small pieces of plot for house construction will not be considered as sale of agricultural land.
Some Practical Issues
Issues related to Agricultural Land
+ The use to which the transferee put the land is immaterial and not relevant.
+ What is relevant is that, in the hands of transferor, the land must be agricultural in nature at the time of transfer.
+ If the transferee converts the agricultural land into non agricultural land or divides it into two plots and sells the same as house sites, the transfer of the land would not give rise to capital gains tax in the hands of transferor. [Motibhai Patel v CIT 131 ITR 120 (Guj)(1981)].