07 May 2016
It would be my pleasure to seek an expert opinion regarding taxation on sale of agricultural land.
The case is below; 1. Assessee : Farmer not filing ROI (Having PAN) 2. Agricultural land located at : Rural Area away from the limit of municipality 3. Purchased in : December 2015 for a consideration of Rs.30 lacs 4. Sold in : May 2016 for a consideration of Rs.1 cr According to my knowledge, the above mentioned transaction does not attract any tax liability. However, I would like to seek your opinion on my knowledge/understanding.
Your reply would be highly appreciated and helpful.
09 May 2016
An agricultural land located beyond the specified areas measured arrially are not capital assets:
1. In case of population of nearest municipality is 10000-100000 2 km. 2. In case of population of nearest municipality is 100000-1000000 6 km 3 In case of population of nearest municipality is 1000000 or more 8 km
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