QUES:Is the compulsory acquisition of rural agricultural land taxable as capital gain?
19 Replies
devang
(CA FINAL article )
(181 Points)
Replied 08 July 2011
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.
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 08 July 2011
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
Paras
(Mcom,CA Final)
(122 Points)
Replied 08 July 2011
not a capital asset , dosent matter whether is it compulsary acquisition .
nidhi goel
(student)
(26 Points)
Replied 09 July 2011
yes, rural agriculture land is not a capital asset
nimish solanki
(IPCC CLEARED)
(108 Points)
Replied 09 July 2011
rural land is nt a copital asset hence it doesn't matter whether der compulsory acq or else
Shah Tarun
(Student)
(800 Points)
Replied 09 July 2011
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.
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 09 July 2011
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.
Souvik Kumar Ghosh
(CA Final)
(1368 Points)
Replied 09 July 2011
Rural Agricultural land is not a Capital Asset within the meaning of Sec-2(14). Hence, there is no question of capital gain.
M. N. JHA
(CA)
(8316 Points)
Replied 09 July 2011
rural agricultural is not a capital assets, so
no any capital gain.....................
(Guest)
Freinds
It is fully exempt u/s 10(37). Therefore no need to see other sections of capital gain.
Thanks
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