An Agricultural land was sold in 4 pieces in F/Y 2007-08.
The land is situated beyond more than 8 km of nagar nigam boundaries and the population of the area is not more than 10k.
Whether the land comes under capital asset and is there any capital gain tax on it?
Pls reply
This is agreecultural land situated in rural area. Hence, it is not capital asset and liability of Capital Gain does not arises.
Agree with Krutsesh.
The land is in rural area.The agricultural land in rural area is not a capital asset.
both are correct......
thanx 4 ur replies.
Its apparently not a capital asset. So no issue of capital gains tax.
As the land is situated outside the specified area, there is no need to refer the population of the area as well.
Please make sure that it does not come within the jurisdiction of any other municipality or corporation or cantonment. (If it does, see the population figure as per 2001 census, not the present population)
IT IS APPARENT FROM THE DETAILS THAT IT WONT ATTRACT CAPITAL GAIN
Agricultural land is not a capital asset, if the land is situated in any area not comprising within the jurisdiction of municpality or a contonment board, or in any area in a distance of eight kn from the local limits of any municipality or cantonment board. Only if the agricultural land does not fall within the above category, the gain there from will be chargeable to tax at 20% + E.C, , if the asset proposed to be sold is held for more than 36 months.
The tax liability will be caliculated after taking the benefit of indexation by applying the cost inflation inded.
If it were outside the meaining of the term"Capital asset, there will be no liability to tax on its sale.
(Compiled from Deccan Chroniccle)
as per the definition of capital assest if any land situated within 8 km of municipality area or the contonment baord then it will come under the purview of capital assest. but in this case the said land(agricultural) is situted beyond the 8 km of nagar nigam ,so it will be excluded in the definition of capital assest and no capital gain tax will arise.
no land is agreecultural land so this land is not a capital assets so there is no capital gains transfer of this land
| Originally posted by :FATEMA | ||
| " | Agree with Krutsesh. The land is in rural area.The agricultural land in rural area is not a capital asset. |
" |
agriculture land does not fall in the definition of capital asset since it is situated beyond 8 kms of municipal limit so there is no question of capital gain
where can we get the municipal limits (area wise ) published in the central govt gazett
CAclubindia
