03 July 2010
my freinds father sale a rural agriculturer land amounted to rs.350000. what treatment would be? if it will exempt then in which section? thanks in advance ?
03 July 2010
If the sale of land is a agriculture land in India then the same is not regarded as a capital asset and hence the profit on sale of the same is exempt.
Defination of agriculture land [(iii) agricultural land41 in India, not being land situate—
(a) in any area which is comprised within the jurisdiction of a municipality41 (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 population41 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 referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette;]
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