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Indexed cost

17 October 2019

Is indexation option available on sale of agriculture land
i.e., option to pay 20% with indexation and 10% without indexation

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5 Replies

CA Dhruva Kalamanji (Chartered Accountant ) (1996 Points)
Replied 17 October 2019

If it is rural agriculture land then no need to offer for tax.

if it is urban agri land then you can avail indexation benefit

Thank you
You can also write to me at sthayin @ gmail for further assistance

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Kapadia Pravin (17259 Points)
Replied 17 October 2019

If it's Rural Agri Land then it's tax free Exempt .
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it it's urban then get indexation and pay 20%.
No option for 10%.
You also get Deduction under section 54B

Suresh Thiyagarajan (Student) (3986 Points)
Replied 17 October 2019

1. I agree with Pravin Ji. Sale of rural agricultural land will be exempt from payment of tax.
2. However, the sale of urban agricultural land will be taxable under sec 45 and no option to pay tax @ 10% without indexation benefit.
3. Indexed COA shall be deducted from sale consideration and arrive at Long term capital gains which will be chargeable to tax @ 20%.
Please correct me if the above solution has an alternative view.

sabyasachi mukherjee (27574 Points)
Replied 18 October 2019

@ hitesh
its rural agriculture land.
mail me at sabyasachimukherjee7098 @ gmail.com

Kapadia Pravin (17259 Points)
Replied 18 October 2019

@ hitesh
I hope your query must have been solved by now.
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Sabyasachi, rural Agri land ? But not specified by Hitesh.
Anyway Do you hv different views then share it here ... welcome