Capital gain

yeas my dear,

it is liable to capital gain when there is compulsory aquisition by govt under sec 45(5)

Tax treatment :- liable for tax when first compensation received form govt.

as per ma opinion, d answer is no.

since, rural agricultural land is not a capital asset

so the question of capital gain doesn't arise at all.

however, it should be assured dat d land aomes in definition of rural agriicultural land as per income tax act

correct me if m wrng

agree with sumit grover

agree with sumit!!!

not a capital asset , dosent matter whether is it compulsary acquisition .

yes, rural agriculture land is not a capital asset

Not taxable

rural land is nt a copital asset hence it doesn't matter whether der compulsory acq or else

Tax Treatment on sale of agricultural land
a) Capital gain on sale of rural agricultural land = Not a capital asset u/s 2(14).
b) Capital gain on sale of urban agricultural land
i. Compulsory acquisition = Exempt from tax u/s 10(37) [provided some conditions are satisfied]
ii. Others = Exemption u/s 54B is available if he purchases other agricultural land.

agree with shah tarun...

Hi, 100% sure "NOT TAXABLE " rural agriculture land is not a capital asset by virtue of definition of section 2(14) of income tax act 1961.

Rural Agricultural land is not a Capital Asset within the meaning of Sec-2(14). Hence, there is no question of capital gain.

rural agricultural is not a capital assets, so

no any capital gain.....................

Freinds

It is fully exempt u/s 10(37). Therefore no need to see other sections of capital gain.

Thanks

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