Dear Friends
I am planning to sell some of the eucalyptes trees owned by me. The sale proceeds derived out of it is taxable under what head? Agri. Income or Capital Gains?
Thanks in advance.
8 Replies
Mihir
(Wealth Manager)
(5293 Points)
Replied 21 December 2013
It will be assessed as agricultural income.
Dhruvi N suthar
(Account Executive)
(303 Points)
Replied 21 December 2013
how should it would be counted under agriculture income
Dhruvi N suthar
(Account Executive)
(303 Points)
Replied 21 December 2013
its not covered under capital gain but how it could be consider under Agricultral Income
CA KARAN MAINI
(Practising CA)
(106 Points)
Replied 21 December 2013
It is not covered under agriculture income bcz definition of agriculture income us 2(1A) includes the income from the sale of agriculture produce and income from doing basic agriculture operations, revenue from the use of agriculture land ,nursery income thus selling of trees are not nursery income and not as capital gain bcz cost of acquisition of spontaneously grown trees is indeterminate hence cap gain can't be computed it is income from other source.
Dhruvi N suthar
(Account Executive)
(303 Points)
Replied 21 December 2013
Yes its included under Income From Other Sources...Not treated as Agriculture Income Nor Treated as Capital gain.......
CA KARAN MAINI
(Practising CA)
(106 Points)
Replied 21 December 2013
Dhruvi I agree with you it is taxable under residuary head of income I.e. income from other sources & thanx for request Dhruvi
R.Parasuraman
(CA final)
(187 Points)
Replied 23 December 2013
It is assessable under capital gains but cost of acquisation in not determinable, due to which computation mechanasim fails and CG cannot be computed. So finaly it is not taxable.
These trees are infact self generated assets and sec.55 does not includes trees so it cannot be taken as NIL to compute capital gains.
Supreme Court Judgement - BC Srinivasa Setty.
Ramanuj
(Accountant.)
(834 Points)
Replied 23 December 2013
Dear all I think its has come under Income from other sources.
Thanks
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