Agricultural land sold

This query is : Resolved

manish (Querist)
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11 August 2011 excuse me please
I Have face a problem regarding sold an agricultural land.

my problem is that the is profit make on above transaction is shown in the return if yes how and where.

Ashokkumar Katte

Ashokkumar Katte (Expert)
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11 August 2011 Reply some questions?
Whether agri land situated within sphere of 8 km of notified city? If yes, then you have to calculate capital gain,either short term or long term.If period of holding is less than 3 years then shortterm gain other wise long term gain
use indexation for long term gain calculation then choose exemptionsU/s.54
show under Income from capital gains.
If agri land not situated within sphere of 8 km of notified city? choose to show in capital account

U S Sharma

U S Sharma (Expert)
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11 August 2011 rural agri land is not an capital asset, while the urban agri land is capital asset, and gains arising on such sales of urban agri land is to be shown in "capital gains" after availing indexation.