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Taxibility on sale of agriculture land

26 April 2022

I have sold my agriculture land for rs 9600000 in 2014-15.

I got that amount in cash and the same was deposited in bank in few fractions.

I got the notice regarding this.

is the income from sale of agriculture land is expempt??

can anyone explain it.

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7 Replies

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 26 April 2022

Not taxable.

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Vikas Chauhan (203 Points)
Replied 26 April 2022

What if the amount is not used as per section 54B

Kiran Hathalia (837 Points)
Replied 26 April 2022

Agriculture land situated in Rural area are exempt from Capital Gains tax as it is not considered as Capital Asset. So check whether land is situated in Rural or in urban area and then decide the taxability.

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 26 April 2022

IN MY VIEW, NOWADAYS ALL THE AGRICULATURE LAND ARE OUTSIDE RURAL LAND TAG. Because Govt made many measure like air distance, population, municipal committe measure.

So Don't treat any land as exempt land.

if you have not did investments etc as per section 54 B than IT Depatment can levi taxes, penalties

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 26 April 2022

To attract capital gain there should be capital asset..Rural agriculture land will not be considered as capital asset for the purposes of capital gains