Capita gain tax

This query is : Resolved

Sujal Patel (Querist)
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18 September 2011 I have inherited an agricultural land from my father who had bought it in 1976 for Rs 2,25,000. Now i want to sell the asset and want to know how shall capital gain tax be applied to the transaction as my property falls in the are mentioned by income tax dept.

I would like to know wether i can have both 10%(without indexation) and 20%(with indexation) possibilities for capital gain tax calculation and payment.

Thanks for the time!

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 September 2011
Not all agricultural land is TAX FREE . While sale of “rural agricultural land” is tax free ;”Urban” Agricultural Land is not tax free. So , you should know when is the agricultural land is ” Urban” in nature.
This is defined in Section 2(14)(iii) as follows :”agricultural land in India, not being land situated-(a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or(b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board …”

Sujal Patel

Sujal Patel (Querist)
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18 September 2011 Thanks for the reply sir. My asset falls in the jurisdiction area and so capital gain tax is applicable. But i would like to know the rate at which it is applicable. I mean wether i can have either of 10%(without indexation) and 20%(with indexation) possibilities for capital gain tax calculation and payment.

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