12 March 2012
An agricultural Rural Land is seperated into number piece of land , this land is to sold seperately to number persons for construction of House . Due to this conversion Whether the agricultural land is exempt as it is not capital asset u/sec 2(14) or we want calculate capital gain as normal land .
12 March 2012
Rural Agricultural Lands - We can note from the above definition that only rural agricultural lands in India are excluded from the purview of the term ‘capital asset’. Hence urban agricultural lands constitute capital assets. Accordingly, agricultural land situated within the limits of any municipality or cantonment board having a population of 10,000 or more according to the latest census will be considered as capital asset. Further, agricultural land situated in areas lying within a distance of 8 kms from the local limits of such municipality or cantonment board will also be considered as capital asset. The condition here is that such areas must be notified by the Central Government having regard to the extent and scope of their urbanisation and other relevant considerations. Consequently, any capital gain arising from the transfer of the abovementioned agricultural lands will be liable to income-tax
12 March 2012
Please check whether it fits in the given definition of Rural Agricultural Land. I suppose it is not. Hence Capital Gain will be attracted as per normal Land.
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