1) What is the TDS on sale of Agriculture land situated outside MC limit but is within 10 Km from MC boundary?
2) Also, My grand mother bought this land and later gifted it to my uncle(tau ji) who as family settlement gifted this to my father...now whats should be purchase price for my father if my grandmother bought it for 5 lakh in 2003?
3) capital gain if this is now sold for 55 lakh?
thank you in advance
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TDS and Other Query
Replies (3)
Quick Summary
1. If this land is actually agricultural land, then TDS is not applicable
2. in this case, the cost of acquisition is the cost to your grandmother i.e. 5 L
3. no capital gains will be chargeable on the agricultural land
2. in this case, the cost of acquisition is the cost to your grandmother i.e. 5 L
3. no capital gains will be chargeable on the agricultural land
.....if the land is considered urban agriculture land as per income tax act, then we have to compute capital gains on it?
Yes... If Urban agriculture land is sold after 2 years of purchase, it is classified as long term and taxable @ 20%. If Urban agriculture land is sold before 2 years of purchase, it is classified as Short term and taxable @ 30%
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