Head for taxation
Vikrant Singh (7 Points)
01 April 2018
income from sale of agricultural land sold for non-agricultural purpose is assessable under which head????
Vikrant Singh (7 Points)
01 April 2018
Dhruv Pancholi
(Ca)
(137 Points)
Replied 02 April 2018
Saifullah Khalid
(Autodidact/Curious )
(633 Points)
Replied 02 April 2018
| Originally posted by : Vikrant Singh | ||
 |
income from sale of agricultural land sold for non-agricultural purpose is assessable under which head???? |  |
Generally "Agricultural land situated in Rural Area " is not considered a "Capital asset " as per the IT act provisions so no Capital gains issue/applicability on such Land BUT few points are to be taken into considered before this :
* Land Should fall under the under the definition of " Agricultural Land in Rural Area (**criteria for same is given at the end of this post)"
* Before sale the status of the land should not have changed/converted (by any means..like sale deed or any other document) to non Agricultural land.
" Agricultural land in Urban area " is treated as a capital asset as per the IT act so Capital gains and tax on same will be there in such cases excemptions (exemptions as per sec. 54 applicable).
** Agricultural Land in Rural Area : --
* Where the agricultural land situated in an area within the jurisdiction of the municipality or where the population is less than ten thousand.
* Where distance of the agricultural land from municipality and population limit is as under:
(1) Distance from municipality > Under 2 kilometres AND Population > 10,000 to 1,00,000.
(2) Distance from municipality > 2 km to 6 km AND Population > 1,00,000 to 10,00,000.
(3) Distance from municipality > 6 km to 8 km AND Population > Above 10 lakhs.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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