Meet Shah (ACA) (178 Points)
09 July 2016Hey, If Agriculture Land hold by assessee since 1992-93 now in 15-16 he converted this land to Non Agriculture land & sold within 1 month from the date of conversion. Now my query is that whether party is liable for Short Term Capital Gain or Long term Capital Gain. (please provide any judgement regarding the same if any).
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 09 July 2016
CA shanky pahoja
(accountant)
(615 Points)
Replied 09 July 2016
sale of agriculture land is not taxable as it is not covered in defination of capital assets provided it is situated in an rural area which has been clearly defined in the act.
And agriculture land that is situated not in rural area, capital gain is taxable if the land is used for the period less than two years
so in your case conversion and sale both will be taxable
however if land is situated in rural area sale of it will not be suject to tax.
Thank you
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 09 July 2016
CA shanky pahoja
(accountant)
(615 Points)
Replied 09 July 2016
thankyou for pointing the error i meant rural but wrote the incorrect word.
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 09 July 2016
Meet Shah
(ACA)
(178 Points)
Replied 13 July 2016
Any Judgement is there regarding the same ???
or where it is written under which section ??
pl reply
CAclubindia
