10 December 2009
I want to know whether in case of rural agricultural land levy of capital gain tax is applicable? Which supporting documents are necessary to prove the land as rural agricultural land?( ref: sec 2(18) of IT act. whether IT return is necessary if there is no CG tax?
10 December 2009
No, capital gain from sale of rural agricultural land is not chargeable to tax as agri land in rural area is not capital asset u/s 2(14) . The land records of gram panchayat / revenue dept shall be sufficient to prove it as an agri land. IT return is necessary only if the Total Income exceeds the basic exemption limit
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