20 December 2010
Respcted Sir, Agricultural land situated outside the municipality area is not a capital asset. while computing capital gain on sale of Agricultural land is it necessary to show cost of aquistion or just put it in exemption column full sale value as exemption and mention the reason that it is agricultural land and not a capital asset.
21 December 2010
Exemption refers to the CAPITAL GAIN. That means, to know what is the amount of exempted amount, we need to know what is the amount of capital gain, and so cost must be deducted from sale value....... But but but, for income tax purpose, u need not even consider such agriculture land in ur computation, u can show as CAPITAL GAIN in agriculture as NIL.., no need to mention sales price as well...
Since agricultural land is not a capital asset, any computation regarding its sale is not required. a mere mention to that effect would suffice. there is no need to mention even the fvc (full value of consideration).
CAclubindia
