25 November 2008
Sale of agricultural land by an assessee does not attract Capital Gains Tax. But when the assessee is a Corporate Entity will it be liable to pay Minimum Alternate Tax on the Sale Consideration recieved?
25 November 2008
First of all Sale of only RURAL AGRI-LAND is exempt under the income tax act.
If the assessee is a Corporate Entity even then the Non-Taxable Income cannot be considered for calculation of Book Profit and thus not liable for MAT.
25 November 2008
As per MAT , Income exempt u/s 10/11/12 (except 10(38), 10(A), 10(B)), if any credited to p & L a/c which can be deducted from that Income.
25 November 2008
But Profit on sale of Agricultural Land is not exempt U/S 10/12/11 but it is exempt from Capital gains since Agricultural Land is excluded from the definition of Capital Asset U/S.2(14). So will it attract MAT the consideration is not deductible from book profit as per the provisions of 115JB?
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