sale of agricultural land taxability

Section 51

Advance money received and forfeited shall be deducted from the cost of acquisition.

if the previous owner has received any advance and forfeited, shall not be deducted :)

it means ultimately the income would be taxable when the land is sold

forfeited amount is taxable in the hands of the seller under the head "income from other sources" if the land is not sold in the same A.Y .No Capital Gain wud be payable.

However if the land is sold in the same AY then the amount recieved from the sale and forfieted advance amount wud be clubed together and charged under the head CAPITAL GAIN.

If the land is Agricultural Land only then can Capital Gain be avoided..But there are very strict norms for a land to be taken as agricultural..kindly keep that in mind..Just being in a village area is not enough..

mm.. Agree :)

Dear anshul

First the agricultural land is not in urban area. Therefore gain shall never be taxable.

Forfeiture of amount u/s 51 is reduced from cost of acquistion. In your case this amount shall also never be taxable. 

kaushal

also check my website

https://taxbykk.blogspot.com/