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Agriculture land

devang (CA FINAL article ) (181 Points)

31 July 2011

is it sale of agriculture land laible for capital gain ?

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10 Replies

CA Nitu Agarwal (CA, M.Com) (266 Points)
Replied 31 July 2011

Rural agricultural land is exempt. But if same falls in urban area, it's liable to Cap Gain.

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 31 July 2011

Refer clause iii of sec 2 (14) -definition of capital asset and check accordingly in your case.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 31 July 2011

Originally posted by : Nitu Agarwal
	Rural agricultural land is exempt. But if same falls in urban area, it's liable to Cap Gain.

AGREED

kamal kishor sen (STUDENT Rajasthan) (2156 Points)
Replied 31 July 2011

Agriculture Land: agriculture land in rural area is not covered in definition of Capital asset hence no capital gain is applicable in case of sale of agriculture land in rural area .However capital gain tax is applicable if land is situated in urban area.

devang (CA FINAL article ) (181 Points)
Replied 31 July 2011

i have querry...

my client having two house one house in chennai and other in ahmedabad

ahmedabad is not let out and also not self occupied then

my question is " my client can claim interest deduction under head of house property ?

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kamal kishor sen (STUDENT Rajasthan) (2156 Points)
Replied 31 July 2011

Originally posted by : devang
	i have querry... my client having two house one house in chennai and other in ahmedabad ahmedabad is not let out and also not self occupied then my question is " my client can claim interest deduction under head of house property ?

Yes he can claim ... but loan must be for house property.

CH.MARUTHI RAM (TAX CONSULTANT) (69 Points)
Replied 01 August 2011

DEAR ALL,

OPEN LAND MONTHLY RENTAL INCOME IS TAXABLE OR NOT & IF TAXABLE CAN WE DEDUCT 30% FROM TOTAL RENTAL INCOME OR NOT - PLZ GIVE ME CLARIFICATION - MARUTHI RAM CHMARUTHI7 @ GMAIL.COM

CA Mukul Mittal (CA in practice) (384 Points)
Replied 02 August 2011

for agricultural land, whether falling in the limits of the muncipality etc. is a difficult task, u may get the certificate of thesame from the Tahsildar of ur area.........

CA Nitu Agarwal (CA, M.Com) (266 Points)
Replied 02 August 2011

Land Rent shall be taxable under the head "Other sources" and not in "House Property". So no deduction u/s 24(a) of 30% will be allowed. Only "Buildings & Land appurtenat thereto" are taxable under the head "House Property".

Sanat kumar (Chartered Accountant) (265 Points)
Replied 02 August 2011

Section22 to 27 only covers House property i.e (Building & Land appurtanant therto) and not only Land. So the income from land is to be assessable under 'Other source' and not under 'house property income'. So no deduction u/s 24 b will be allowed. You can claim any expense that you've incurred for earning that rent from 'other source income'