ADITYA YADAV (ARTICLED ASST.) (70 Points)
26 June 2013|
Hello all LTCG on sale of part of agricultural land which is not a capital assets as defined u/s 2(14)(iii) .is the capital gain exempt ?if so under what section? Thanks in advance!!!!!!!!! |
CA Manish Chainani
(Business)
(111 Points)
Replied 26 June 2013
if a asset which is not covered under defination of capital asset is tranferred then it is capital receipts and not taxable at all.
ADITYA YADAV
(ARTICLED ASST.)
(70 Points)
Replied 26 June 2013
then in computax where we can show the income?
CA.Vinita Gupta
(Deputy Manager- Finance)
(2923 Points)
Replied 26 June 2013
It is not a Taxable Income so will not come in Computation
Anonymous
(..)
(63 Points)
Replied 26 June 2013
Right, it will not come in computax anywhere, it is not an income as per income tax act, it is simply a capital receipt. Credit it directly to Capital Account and will not be shown in Income Tax Return (Computax) anywhere.
ADITYA YADAV
(ARTICLED ASST.)
(70 Points)
Replied 26 June 2013
if the same person invest the amount in a residential house is it required to show it in the computax?
CA Manish Chainani
(Business)
(111 Points)
Replied 26 June 2013
the deduction of sec 54(series) are available agaist capital gain
if there is no capital gain so no question arouses of deduction
work is worship
(Service)
(2728 Points)
Replied 26 June 2013
Agriculture land in rural area is not covered in definition of Capital asset hence no capital gain is applicable in case of sale of agriculture land in rural area .However capital gain tax is applicable if land is situated in urban area.
manoj
(student)
(5205 Points)
Replied 26 June 2013
dear if it is not a capital asset than how can u say it is a capital gain
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 26 June 2013
U/S 2(14),capital asset does not include RURAL AGRICULTURE LAND but not AGRICULTURE LAND
So first you need to bifurcate your land as wheather rural or urban agriculture land,if if is rural agriculture land no CAPITAL GAIN TAX, otherwise liable to pay capital gain tax.
the following are the basis for bifurcation as follows
To be eligible a land as rural agriculture land,either of the following conditions are satisfied
1)If your land is situated beyond the 10kms from municipality or cantonement board
OR
2)If the population where land is situated is above 10000 as per latest census available
CA Subin VR
(Practicing CA)
(450 Points)
Replied 27 June 2013
Whether the ITO challenge the Assessee's declaration of 'Rural Agricultural land' ?
Whether ITO can demand Local authority's certification regarding categorisation of land as Agricultural land as an evidence evenif the following conditions are satisfied ?
1)If your land is situated beyond the 10kms from municipality or cantonement board OR 2)If the population where land is situated is above 10000 as per latest census available.
Pushpender Kadian
(Student)
(28 Points)
Replied 27 June 2013
Rural agriculture land is not covered in definition of Capital asset hence no capital gain on sale of rural agriculture land.
Mukta Joglekar
(-)
(55 Points)
Replied 27 June 2013
| Originally posted by : ADITYA YADAV | ||
 |
if long term gain arising from the sale of agricultural land, then the same is exempt u/s 10(37) subject to the condition mentioned therein. |
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