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Agricultural land sale

rohit chadha (accountant) (107 Points)

13 November 2013

Respected sir,

If a person sale a agricultural land , recd money not invested in agricultural land again

Is that liable to pay tax ?

If he invsted money in bank fdr ?

diff between rural v/s urban agricultural land ?

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13 Replies

Atinder Singh (Tax consultant) (109 Points)
Replied 13 November 2013

Hi Mr. Rohit,

There is no capial gain tax in case of sale of Rural agriculture land because agriculture land is not a capital asset as per section-2.

You have to deposit the unspent sale consideration in capital gain scheme.

You can get the check the difference between rural or urban land from below link:

/experts/-agricultural-land-rural-or-not--213563.asp#.UoNFWOKfZAo

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CA Kedar Sakhardande (Proprietor) (942 Points)
Replied 13 November 2013

sale of agriculture land is not taxable. So no need of investment

rohit chadha (accountant) (107 Points)
Replied 13 November 2013

respected sir,

Is that positive decision , if the clint invested money on bank fdr , only just for saving money ?

if he sold the rural agricultural land ?

and , the clint not liable to pay any type of tax ?

Mihir (Wealth Manager) (5293 Points)
Replied 13 November 2013

Location of this agricultural land is important, whether it is near a territory of municipality.

CA Kedar Sakhardande (Proprietor) (942 Points)
Replied 13 November 2013

the land should be away from 8 km periphery of municipal limits

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Sheena Maheshwari (ARTICLESHIP) (240 Points)
Replied 13 November 2013

Hi sale of agricultural land in rural area is not taxable however, that in urban area is taxable.

CA Pallav Singhania (IT System Auditor) (33567 Points)
Replied 13 November 2013

Agree with above replies,

Agricultural Land isn't a Capital Asset,

Hence, No Capital Gain on Sale of such land...

However, such agriculture land must same as defined under the IT act...

bhupinder (student) (66 Points)
Replied 13 November 2013

There is no question of cap gains due to sale of agriculture land

praveen (Chartered Accountant) (6971 Points)
Replied 13 November 2013

Sale of Agricultural Land not in located in urban area is exempt from income tax. But due to the recent amendments in the definition of agricultural land, a lot of land will be termed as urban agricultural land and will fall under the purview of capital asset and the capital gains hence becomes taxable. For more information check the following link https://ouraccounts.blogspot.in/2013/11/agricultural-land-ramifications.html

Balasaheb (proprietor) (58 Points)
Replied 13 November 2013

Not taxable if properly disvlosed in ITR

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akash kohli (information about ca. updation) (53 Points)
Replied 14 November 2013

Agriculture income fully exmpt except rural agricultre land

Anil Patil (Partner) (21 Points)
Replied 14 November 2013

Respected sir , one individual person ( Father ) dead , then nominee ( Son & married Daughter ) sell Rural Agricutural Land , all amount transfer to divide nominee bank a/c , married daughter this amount invested in purchase new car , fd in bank & remaining amount invested in his husband business , how to pay tax all transaction

meanoop (Student CS) (150 Points)
Replied 14 November 2013

Agriculture is the only field full of scope, student should make their career in agriculture field, and country should also need lot of experiments in this field.

https://www.modiforpm.org/