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Tax on sale of Agriculture Land

akhilesh (student) (54 Points)

29 August 2020

Hi,
1. Is sale of agriculture land is considered as capital gains.
If yes, do we need to pay tax on the same

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5 Replies

CA Raj Doshi (Practising CA) (8939 Points)
Replied 29 August 2020

There is no capital gain on sale of RURAL agricultural land.
There is capital gain on sale of URBAN agricultural land.

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akhilesh (student) (54 Points)
Replied 29 August 2020

Can you please mention section for the same

sandhya (Article assistant) (124 Points)
Replied 29 August 2020

Akhilesh , rural agriculture land is not a capital asset , if any asset is not a capital asset when it sold the gain will not be considered as capital gain .

for section you just read capital asset definition in income tax.

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 30 August 2020

Refer Capital Assets defination given in Section 2(14) of Income tax Act, 1961..
if assets is not capital asset, than there is no Capital Gain/Loss on sell of same..

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