Profit on sale of agricultural land outside specified area

dear vinod,

as far as i am concerned i think such reciept will be considerd as capital reciept and hence not subject to tax....

cheers

ganesh agarwala

Dear Sir,

One more doubt related to this:

As per Sec 54B, exemption is available for capital gain on transfer of agricultural land.. is it mean the agricultural land within the specified area only ?  Because agricultural land outside the specified area is not capital asset at all.. so no capital gain and no need of exemption.. right ?

Thanks,

vinodaca74 @ gmail.com

It will be a capital receipt exempt from income tax

A very interesting matter came up before the Punjab and Haryana High Court and it was decided in the judgment of CIT v. Lal Singh and Others 325 ITR 588 that where a certificate is produced from the Tehsildar that the land sold by the assessee was beyond 8 kms from the municipal limits, hence such sale of agricultural land will be outside the purview of capital asset as per the definition contained in the Income-tax Act and as such the gain arising on sale of such agricultural land which is beyond 8 kms from the municipality limits will not be subjected to income-tax.

A very interesting matter came up before the Punjab and Haryana High Court and it was decided in the judgment of CIT v. Lal Singh and Others 325 ITR 588 that where a certificate is produced from the Tehsildar that the land sold by the assessee was beyond 8 kms from the municipal limits, hence such sale of agricultural land will be outside the purview of capital asset as per the definition contained in the Income-tax Act and as such the gain arising on sale of such agricultural land which is beyond 8 kms from the municipality limits will not be subjected to income-tax.