Garvit Dave (Portfolio Analyst & Tax Consultant) (295 Points)
10 May 2012Dear Friends,
I have sold inherited Rural agriculture Land at Rs.30 lakhs. Does it attract any capital gain tax or any other tax?
I understand that rural agriculture land is not capital asset hence it should not come under the perview of capital gains tax.....but if I keep this Rs 30 lakh in my bank a/c or invest in buying new house will i get benefit of exemption???
Please help me out on this...its an urgent!!
Thanks & Regards
Garvit Dave
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 10 May 2012
Hi Garvit,
Since you have sold rural agricultural land, it is not a capital gain.
Hence, no cap gains tax has to be paid.
As for buying new house, you can do the same. But keep in mind that you have to invest full Rs. 30 Lakhs in buying the new house.
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 10 May 2012
Garvitji,
Your understanding is correct. Sale of agriculture land does not attract Capital Gain, it is exempt.
You can purchase house property.
But i dont agree with Pratik Agrawalji to invest full consideration as it is exempt.
Members, Please correct me if I'm wrong.
Roopwant Soni
(Chartered Accountants)
(32 Points)
Replied 11 May 2012
Member
(Management)
(325 Points)
Replied 11 May 2012
If you read the definition of capital asset u/s 2(14), you will realize that if the agricultural land is situated within 8 km of any urban area, then it is treated as capital asset and capital gains is payable on sale. Merely because it is rural and agricultural land does not automatically qualify for exemption from capital gains.
Jigar Joshi
(Taxx)
(41 Points)
Replied 30 August 2012
Please Friends Reply that capital gain is exmpeted under which section.????
nilesh
(gfgfg)
(21 Points)
Replied 15 October 2012
hello,
i have sold my agriculture land to 50lakhs. it is not falling in the capital gain area. so it is fully tax execpted.
but i want to invest only 20 lakh in buying property & 30 lakh i have to put in FD so it is possible or not ? in these case how much tax i have to pay
kindly revert back with your valuable suugestions.
you can also reach to me on nileshdha @ gmail.com
Regards,
Nilesh
shammi
(service)
(50 Points)
Replied 29 October 2012
Dear Nilesh,
gain from sale of agriculture land in rural area is free from tax (not a capital asset)
in ur case, the gain if tax-free. further you can invest the money in property (any) or FD.
but interest on FD will not be tax free.
anil a prajapati
(financial assistant)
(22 Points)
Replied 11 March 2017
Sir
I have to sold my agriculture land 30 lakh in year fin 2014-15 .but i have to received income tax notice
his Sub : non Filing of Income tax return and he is also information give me
2014-15 AIR 007 Sold Immovable property Valued Rs . 30 lakh
2014-15 TDS-194a TDS Return -Other Interest
Above matter mention in my notice . So Sir what i do futher
CAclubindia
