CA Atihash Agarwal (CHARTERED ACCOUNTANT) (187 Points)
14 December 2009An 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
Krutesh Patel
(ACA)
(727 Points)
Replied 14 December 2009
This is agreecultural land situated in rural area. Hence, it is not capital asset and liability of Capital Gain does not arises.
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 14 December 2009
Agree with Krutsesh.
The land is in rural area.The agricultural land in rural area is not a capital asset.
Max Payne
(employed)
(2569 Points)
Replied 14 December 2009
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)
Chandresh
(ARTICLE CLERK)
(69 Points)
Replied 14 December 2009
IT IS APPARENT FROM THE DETAILS THAT IT WONT ATTRACT CAPITAL GAIN
Airody Manjunatha Alse
(ca)
(100 Points)
Replied 15 December 2009
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)
BIJAY KUMAR RUNGTA
(CA FINAL STUDENT)
(85 Points)
Replied 15 December 2009
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.
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 15 December 2009
no land is agreecultural land so this land is not a capital assets so there is no capital gains transfer of this land
Rahul Ramesh
(CA Final, BCom, MBA)
(1084 Points)
Replied 15 December 2009
| Originally posted by :FATEMA | ||
| " | Agree with Krutsesh. The land is in rural area.The agricultural land in rural area is not a capital asset. |
" |
Bharat Khurana
(Student)
(153 Points)
Replied 19 December 2009
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
bgreddy
(promoter)
(32 Points)
Replied 07 April 2011
where can we get the municipal limits (area wise ) published in the central govt gazett
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