23 November 2010
Mr.X bought an agricultural land for 2lakhs and he sold out to Mr.Y. for 18lakhs in the same year. what is the capital gain in the hands of X. Mr Y is using the land for agricultural activity only.
In the same case will there be any change in capital gain in the hands of X if the land bought by Y is used for non agricultural activity i.e if Y had constructed some commercial building or apartments in that agricultural land.
23 November 2010
If the agricultural land which is situated in a specific area then Calcualtion of Capital gain shall be done in accordance with Sec 48.
IF it is not situated in a specific are then there is no capital gain tax
23 November 2010
It is location of the land not the usage which attracts capital gains tax in the case of agricultural land. so not capital gain tax if the land is situated in the location as per IT Act.
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