Capital gains
This query is : Resolved
05 February 2012
pls anybody can tell me that capital gain from sale of agricultural land is taxable under which head of income or it shall be included only for the purpose of calculating tax like agricultural income but it is exempt by virtue of Sec 10(1)
06 February 2012
Capital gains arise only on sale of capital assets. In case your agricultural land is a rural agricultural land, then there would not be a capital gains and the capital gains tax. However if the land is a urban agricultural land, then you may need to go through the tax provisions and pay tax accordingly.
06 February 2012
Dear Friend!!
Plz go through Capital Gain Portion of Income Tax Thoroughly.. You will Find That capital Gain Arises on Capital Assets Only. On satisfaction of Certian Criterions You Will Find That Agricultural Land is Not a Capital Assets. you even can Avoid entire Tax on the Basis of Satisfaction of 3 criterions about that Particular Land 1.Agricultural Usage 2. Outside Municaipal Limit beyond notofied Kilometers 3. not a Non-Agricultural Category(e.g. Mines, Diverted Land, Barren Land, Dump Yard etc.) means can be Proven that it was being Used for Agricultural Purpose for Last Certain Years.
CA Manish J, Agrawal 9425251861
Plz go through Capital Gain Portion of Income Tax Thoroughly.. You will Find That capital Gain Arises on Capital Assets Only. On satisfaction of Certian Criterions You Will Find That Agricultural Land is Not a Capital Assets. you even can Avoid entire Tax on the Basis of Satisfaction of 3 criterions about that Particular Land 1.Agricultural Usage 2. Outside Municaipal Limit beyond notofied Kilometers 3. not a Non-Agricultural Category(e.g. Mines, Diverted Land, Barren Land, Dump Yard etc.) means can be Proven that it was being Used for Agricultural Purpose for Last Certain Years.
CA Manish J, Agrawal 9425251861
07 February 2012
taxing on agriculture is not the subject of CG but of SG per our constitution. Capital Asset as defined under Income Tax Act does not consider agriculture land rather it exempts the same provided a few conditions need to be ensured for the purpose of taxing it as captial gains. Where agriculture land is specified/notified per the conditions laid down for taxing means not considering it as agriculture land but a commercial or urban land per intention to be inferred. It is further clarified accordingly that Rural Agriculture land is not a Capital Asset only Urban agricultur land subject to fulfilment of certain conditions may be excluded hence taxable beyond the fulfilment of specified conditions being treated as captial asset.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Gst registered proprietorship firm
- Price inclusive or exclusive of GST while made entry in P& L Account
- Minimum tax payable to file Updated return
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Salary from Qatar in Dollars in India
- TDS on purchase of under construction property from a reseller
- GST ISSUE OF INPUT AND OUTPUT GST
- Change Of Karta In Case of Death
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Non filing of I T Returns
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
