Sale of sand of agriculture land
megha Aggarwal (157 Points)
30 April 2024
If the sand of agriculture land is sale out, will it be taxable? if yes under which section?
5 Replies
MPR Sanjay Kumar
(3118 Points)
Replied 30 April 2024
The exemption u/s 54B is available regarding capital gains arising from the transfer of agricultural land. This exemption is available when capital gain arises from the sale of urban agricultural land. The exemption under section 54B is available only to individuals and HUF
Nikhil Kaushik
(Fellow CA)
(85758 Points)
Replied 30 April 2024
this is not sale of agricultural land as incorrectly suggested above. The sale of soil will be taxable as either business income or income from other sources depending on the facts of the case.
You can refer:
Income Tax Appellate Tribunal - Chandigarh
Sh, Amarjeet Singh, Ambala vs Assessee on 17 September, 2014
MPR Sanjay Kumar
(3118 Points)
Replied 30 April 2024
Dear megha Aggarwal ,
As per the current Income Tax rules in India, the sale of sand on agricultural land is considered as a non-taxable transaction. This is because agricultural income is exempt from income tax under the Income Tax Act.
However, if the sale of sand is considered as a business activity carried out on agricultural land and not as a part of agricultural operations, it may be subject to tax. In such cases, the income generated from the sale of sand would be taxable under the head 'Income from business or profession'.
As per the current Income Tax rules in India, the sale of sand on agricultural land is considered as a non-taxable transaction. This is because agricultural income is exempt from income tax under the Income Tax Act.
However, if the sale of sand is considered as a business activity carried out on agricultural land and not as a part of agricultural operations, it may be subject to tax. In such cases, the income generated from the sale of sand would be taxable under the head 'Income from business or profession'.
Nikhil Kaushik
(Fellow CA)
(85758 Points)
Replied 30 April 2024
please read the case laws before advising.
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