Agricultural land

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2013 A company is engaged in agricultural activities on a land which was not within the municipal limits till AY 2013-14. Now the land has been included in Municipal Limits w.e.f. 01st May 2013. Would there be any wealth tax on such land now?

Also please suggest whether the agricultural income on such land would be exempt or not from Income Tax now?

Ajay Mishra

Ajay Mishra (Expert)
Follow

06 October 2013 Hi

Go to the following link:

https://taxguru.in/income-tax/wealth-tax-agricultural-lands-urban-area.html

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

06 October 2013 “As the wealth tax is levied only on unproductive assets, there was no intention to levy wealth tax on the agricultural land which cannot be termed as unproductive assets,” the Finance Ministry explained after passage of the Finance Bill 2013 in the Lok Sabha amid opposition walkout. The government explained that the taxes were being levied only on urban land and not on agricultural land. Reuters.

It further said that the wealth tax is not leviable on urban land which is “classified as agricultural land in the records of the Government; and used for agricultural purposes”

Any income from such land driven as agricultural income is exempt from the purview of tax..

regards,

Message likes : 1 times

Sanket

Sanket (Expert)
Follow

06 October 2013 As the wealth tax is levied only on unproductive
assets, there was no intention to levy wealth tax on
the agricultural land which cannot be termed as
unproductive assets.

the wealth tax is not leviable on
urban land which is classified as agricultural land in
the records of the Government; and used for
agricultural purposes. The proposed amendment will
take effect retrospectively from April 1, 1993

Message likes : 1 times

CS RAJESH C.CHOUDHARY

CS RAJESH C.CHOUDHARY (Expert)
Follow

06 October 2013 Agree with Ajay Sir

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2013 Thanks to all. That means no wealth tax on urban agricultural land. But suppose the land is diverted. In that case, would it be termed as agricultural land?

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

07 October 2013 What kind of diversion???

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2013 If the diversion is for mining purposes, then ?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now