Capital gain on sale of agricultural land

Vishal (Article Asst.) (95 Points)

02 December 2016  

Hi there,

Is sale of agricultural land is liable to capital gain tax? Further if agricultural land is sold for construction of residential / commercial property (I dont know how they gonna determine whether land has been sold for what purpose) then whether such gain on sale of such agricultural land is liable to capital gain tax? The same stand is taken by ITO in one of my client's case. Please reply at the earliest.