gain on sale of agricultural land

This query is : Resolved

CA Sanjay Baheti (Querist)
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24 April 2014 One of my client had a agricultural land with joint ownership of 5 brothers & 3 sisters located in village Jamiyatpura within 14Kms range from Municipal Corporation or cantonment board area of Ahmedabad & having population of the village is nearly 2000 persons.

This land is subsequently acquired by Gujarat Govt in F.Y.2013-14 & given consideration to all joint owners separately and deducting TDS as per I.T.Rule.

Now query is whether such land can be considered as agricultural land in rural ares hence not considered as capital asset within meaning of section 2(47) of I.T.Act ,therefore whatever gain on sale of the same is not subject to long term capital gain tax.

Please reply soon.

Moreover with a view to claim TDS refund how to show the same receipt in ITR while filing concerned ITR relevant to Asstt. Year.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 April 2014 you have mentioned within 14 kms, which is not the right way of presenting facts for anyone to answer your query as the maximum limit is 8 kms.

assuming this land is beyond 8 kms from Ahmedabad cantonment, it would be considered agricultural land...you need to show the receipt as exempt income in the "EI" sheet and claim refund.

further, even if the land is considered as non-agriculture and satisfies conditions mentioned in section 10(37), it shall still be considered as exempt income.

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