Proceeds of sale of agriculture land

if the agricultural is not covered by urban land then NO TAX on sale proceeds received.

1]before going to the defination of 2 (14) u should know the what are the conditions;

                 1) there should be a Capital Assets

                  2) there should be transfer of such capital asset

  above both the conditions must be fulfilled.

2] Sec 54 B Exemption for agriculture land:
             LTCG\STCG on transfer of Urban agriculture land (used for agriculture purpose for at least 2 yrs. either by himself or his parents) shall be exempt if the amt. of capital gain is utilied for purchase of another agriculture land in rural.

 3] if agriculture land in rural area then its not a capital asset that mean NO CAPITAL GAIN.

Profits arising on transfer of rural agricultural land amounts to agricultural income under section 2(1A). Such income cannot be included in the total income under section 10(1).

SATHYA SANKEERTH K N 

THIS FOR YOUR KIND INFORMATION RURAL AGRICULTURAL LAND IN INDIA IS NOT A CAPITAL ASSET AS PER SEC 2 (14) OF THE IT ACT.

@ Jay..

As you have already mentioned that the Agricultural Land is not a capital asset u/s 2(14), then there do not arise any question of capital gain on such transfer.

However, if Mr. A, is doing business of property/real estate, then there will arise a Business Income rather than the Capital Gains.