Capital gain taxability

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies capital gains tax liability when selling land that was converted from agricultural to non-agricultural use. The period between purchasing the land and selling it determines if it's a short-term or long-term capital gain. The cost of converting the land to non-agricultural use is considered part of the improvement cost.

MOHAMMED ZARIF KHAN

MOHAMMED ZARIF KHAN (Querist)
Follow

04 August 2020 I have purchased agriculture land on 29.08.2012. I converted agriculture land to non agriculture land in 2017-18 as on 23.10.2017. after conversion I sold this land on 16.07.2019. what will be capital gain liability?

Harshit Bangar

Harshit Bangar (Expert)
Follow

04 August 2020 Capital Gain Tax Liability as per normal provision no exemption will be claimed for agricultural land,
The cost of conversion of land from Agricultural to Non-Agri Shall be treated as part of cost of Improvement.

MOHAMMED ZARIF KHAN

MOHAMMED ZARIF KHAN (Querist)
Follow

04 August 2020 What will be period of holding and cost of acquisition ?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

09 August 2020 Since it has been kept for less then 3 years it will be considered as Short Term Capital gain.

https://cleartax.in/s/capital-gains-exemption-on-sale-of-land

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