ramcharan
(articled assistent)
(367 Points)
Replied 20 September 2012
yes it is exempt
even though the act does not specify that capital gain from rural agricultural land, it indirectly means the same. and as per my knowledge that {exempted income need tobe shown in return
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 23 September 2012
yes it is exempt and i think u need to shoe it inIT RETURNS
Srikanth M S
(finalist)
(88 Points)
Replied 25 September 2012
Dear Devendra,
For any asset to be taxed under the head capital gains there are 3 conditions to be observed:
1. Existance of a Capital Asset in accordance with the Act and not excluded from the definition of Capital asset.
2.Computation specified as per the Act.
3. There should be a transfer as per the definition u/s 2(47) and not excluded u/s 46 or 47 of the Act.
with regards to the same there is no taxability arising as the Rural Agriculture land is excluded specifically from the definition of Capital Asset for the head capital gain.
For any income to be regarded as exempt there shall be taxability first. else the same is not shown in the IT return at all.
As per the experts the Gain arising from sale of such land is not even Agriculture Income..
As the same is not taxable anywhere it cannot be considered as Exempt under the Act.
Conclusion: The Incomes Taxable only will be shown in the statement of Income tax or the IT return..
This is purely an opinion as per the experience in the Tax computaions.. Any other view expressed are most welcome...
Regards,
Srikanth.M.S
Divv.22
(CA)
(28 Points)
Replied 25 September 2012
It is Exempt, Rural Agricultural Land is not considered as a Capital Asset, since it isnt considered as a capital asset i dont think it should be shown in the return
CAclubindia
