Mr. 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.
Yes. The same is taxable as Short Term Capital Gains.
Regards,
Devendra Kulkarni
Land covered beyond 8 kms of muncipal limits is not a capital asset & so no capital gain
Your land is Rural Agricultural Land which is out of the definition of Capital Asset. hence its transfer is not taxable.
the concerned land is not a capital asset.hence no capital gain
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