One of my relative has agriculture land in rural area since 1971 of Rs. 1500/-. Now he sold this land after converting from AGRICULTURE LAND to NON AGRICULTURE LAND in 2014-15.
Now which section attract to this transaction and please suggest me better option to reduce capital gain if levied?
02 April 2015
The conversion of rural agricultural land to non agricultural land will not be taxable as it is exempted u/s 10(1). The sale of non agricultural land will attract Short term capital gain as the holding period is less than 3 years. And you can not get exemption from STCG
02 April 2015
conversion date is required to find the holding of non agricultural land and its held for less then 36 months hence it will taxed as stcg with no exemption available.
02 April 2015
no, for transfer refer sec 2(47) there is no transfer as transfer is in relation to owners and not the status of capital asset.
and is if its converted to non agric in 2014-15 then u have sold also in 2014-15 so as non agri it was held for less then 36 months hence it is stcg and not ltcg....
CAclubindia
