06 February 2012
one person has deposited in his saving a/c say 5.00 lacs on 1 march, 3.00 lacs on 2 march 2011(i.e. total 8.00 lacs ). total deposit during 10-11=8.5 lacs on 30 march 2011, he withdraws 7.00 lacs.
this 8 lacs is out of sale of agriculture land.
deposit was made to satisfy the home loan lender that borrower's contribution is ready.
then after obtaining homeloan, whole 8.00 lacs used to purchase home.
whether any tax liability arise ? whether we should/ have to show sale of land & purchase of property in return (ITR) or there is no need.
07 February 2012
If the land is not situated in > a municipality/cantonment with a population of 10,000 or more or > within 8 KMS of the municipal limits, the agricultural land does not come within the definition of Capital asset and hence no capital gains arises.
CAclubindia
