I have a rural agricultural land. It is not within 8 kms from the municipal limits.
However, it is now barren. It cannot be cultivated.
Is sale of such land liable to capital gains tax?
Thanks.
Chris Cairns (None) (36 Points)
03 July 2009I have a rural agricultural land. It is not within 8 kms from the municipal limits.
However, it is now barren. It cannot be cultivated.
Is sale of such land liable to capital gains tax?
Thanks.
CA. Varun Soni
(Chartered Accountant)
(201 Points)
Replied 04 July 2009
Hi there,
as per the provision of the income tax, Rural agriculture land is not a Capital Assets. Since it is not a capital assets how can it be taxed..
Hence no Capital Gain Tax on sale of rural agriculture land
Enjoy!!!!!!!!!!!!!!!
Chris Cairns
(None)
(36 Points)
Replied 04 July 2009
Thanks for the promt reply. Can you also tell me the tax implications if the land is situated within 8 kms?
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9058 Points)
Replied 04 July 2009
its not a capital asset and hence not taxable
sudarshan
(CA)
(745 Points)
Replied 21 July 2009
Agricultural land means agri operations should be carried on at the time of sale.Temporary suspension of activities is ok. But if it is not used for a long time or no income is shown then exemption may not be available.
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 21 July 2009
Mr.Chris Cairns
Ms.Tinku
Mr.Varun Soni
Mr.Born to rule
Mr.CA Devansh Gandhi
Mr.Sudarshan
I would like to add to the matter discussed herein.
sudarshan
(CA)
(745 Points)
Replied 22 July 2009
In order to avail of exemption from the Capital Gains Tax on sale of Agricultural Land, three conditions have to be satisfied:
PARAS CHHAJED
(CA Practice )
(1004 Points)
Replied 15 December 2018
Please go through the following cases :
Supreme Court of India
Smt. Sarifabibi Mohmed Ibrahim ... vs Commissioner Of Income-Tax, 204 ITR 631
Mumbai High Court
Commissioner of Income-Tax v. V.A. Trivedi 172 ITR 95
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