Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

'Capital-gains' & 'Tax-hunters' !

Last updated: 13 August 2007

Owning land away from city limits may be a good idea to keep away from the madding crowd — but not so much from taxes. As the penchant for a house with that green patch grows even in smaller cities, the income-tax department is mulling over enhancing the notified area under local urban development authority. At present, capital gains tax is imposed if agricultural land is situated 8 km from the local limit of a municipality or a corporation. Otherwise, agricultural land is excluded from the list of capital assets given under Section 2 of the Income-Tax Act.