14 September 2012
A company has sold agricultural land. Being an agricultural land, no capital gain would be levied. But is MAT u/s 115JB applicable on the same or not?
14 September 2012
Hey as per my view U/s 54 B It will be allowed to only Individual & HUF not to Co. , so in which Section u r Claiming that co.have no Capital Gain ????
14 September 2012
Mr. Ankur & Mr. Pankaj, Under the provisions contained in the Income-tax Act 1961, capital gains tax is payable whenever profit is derived on selling a capital asset. However, agricultural land in India under certain facts and circumstances is not treated as capital asset as per the definition contained in section 2(14) of the Income-tax Act 1961.
The simple theme is if an item which is sold is not considered as a capital asset. In that situation any gain arising therefrom will not be subjected to income-tax.
15 September 2012
Swasti.....pls clarify if I am wrong if I say that agriculture land is treated as a capital asset in the hand of a co. and therefore its sale its taxable in hands of co.
17 September 2012
Mr. Pankaj .... As per definition given in Sec 2(14)(iii), agricultural land in India is not a capital asset for an assessee. Now assessee covers both individual as well as company. So as per my understanding, it is not a capital asset in the hands of a company engaged in agricultural activities only. If there is any other provision, please let me know.
19 September 2012
But my query on the matter has been perhaps subsided - Is there MAT liability on Agricultural land sold by a private limited company? Could anybody please clarify this?
CAclubindia
