Capital gain

This query is : Resolved

M.M.SURANA

M.M.SURANA (Querist)
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07 June 2014 A Aguriculture land which situated in rural area is sold and attract profit . As per definition of Capital Assets Aguriculture land is not forming part of capital assests . pl let me know about treatment of income under incometax Act.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 June 2014 then no capital gain attracted as transfer of rural agricultural land is not taxable.

M.M.SURANA

M.M.SURANA (Querist)
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07 June 2014 thanks Mr. Tushar. One more doubt If I gift this property to my friend , whether it attract tax u/s 56(2) in the hand of receipant

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 June 2014 the ans is yes as income from other sources doesnt make any distinction for capital asset and non cap asset and sec 56(2) if applicable will apply.

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