narendra mhetre (Service) (32 Points)
24 May 2013Mr. X purchased agricultural land in Rural area ( land is situated 10 k.m. away from the local limits of Municipality of the Town having population of 5 lakhs )on 05/04/2013 for Rs. 5 lakhs and sold the said Agricultural land for Rs. 10 lakhs on 21/05/13. Plz advise whether the profit on sale of above Agricultural land Rs. 5 lakhs is Taxable under the Income Tax Act.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 24 May 2013
Yes. The same is taxable as Short Term Capital Gains.
Regards,
Devendra Kulkarni
Ishan kewlani
(Article)
(172 Points)
Replied 24 May 2013
Land covered beyond 8 kms of muncipal limits is not a capital asset & so no capital gain
CA Prateek Garg
(CA in Practice)
(1447 Points)
Replied 25 May 2013
Your land is Rural Agricultural Land which is out of the definition of Capital Asset. hence its transfer is not taxable.
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 26 May 2013
the concerned land is not a capital asset.hence no capital gain
CAclubindia
