Capital gain on agrticulture land
This query is : Resolved
25 November 2014
Hi,
I had an ancestral agriculture land which I sold to my wife in 2010. Now My wife is willing to sell that agriculture land. I want to know whether this will come under capital gain category or not.This land is in completely rural area(no near by municipal corporation with 10 km). We still doing farming on this land.
If this will come as capital gain, let me now the ways to save capital gain on it.
If this will not come as capital gain, Does she need to show this sell at the time of income tax return filing or she need not to mention it at the time of income tax filling.
Narayan
I had an ancestral agriculture land which I sold to my wife in 2010. Now My wife is willing to sell that agriculture land. I want to know whether this will come under capital gain category or not.This land is in completely rural area(no near by municipal corporation with 10 km). We still doing farming on this land.
If this will come as capital gain, let me now the ways to save capital gain on it.
If this will not come as capital gain, Does she need to show this sell at the time of income tax return filing or she need not to mention it at the time of income tax filling.
Narayan
25 November 2014
Since it is rural ahricultural land, it is NOT a capital aseet and hence the gain is not taxable.
You can show the said transaction under EXEMPT income.
You can show the said transaction under EXEMPT income.
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25 November 2014
Thanks Mr. Amol S. Joglekar for the quick reply.
Can you please also let me know under which section of income tax this can be shown as EXEMPT INCOME.
Can you please also let me know under which section of income tax this can be shown as EXEMPT INCOME.
25 November 2014
Basically it is a capital receipt and hence not taxable. In the ITR, it may be shown under exempt income.
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