Buying agri land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2010 Hello Expert,
I am planning to buy agricultural land at my home town. I am falling in 30% tax slab.

Can you pls advice me with your valuable inputs:

1. Is there any benefit/drawback in purchasing that land in my name ?

2. Should I purchase this land in my Father's(Sr. Citizen) or wife's name ? since I am falling in 30% slab of income tax.

CA.RAJIV SHUKLA FCA

CA.RAJIV SHUKLA FCA (Expert)
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29 December 2010 By White Money you can but Agriculture Land as a Investment or for Agro purposes.

Capital Gain @ 20% will be on Land at the time of sale, if not used for Agricultural purposes by you and your family up to 2 years after the date of purchase.

In other case No capital Gain shall arise on sale if it is used for Agricultural purposes by you and your family up to 2 years and may be reinvested again in Agriculture Lands.

If Land purchased in the name of Parnets then money came from to be prove as source of income,transfer took place without consideration or gift need to be established.

Amount paid wihtout consideration to a relative in over of Rs.50000/= Tax shall be liable on that amount.

At the time of sale father will be assessed as described for you supra but rate of tax will be same but slab will be high.

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