Capital Gains on agricultural land
This query is : Resolved
03 March 2008
Mr. X has purchased 3.00 Acres of agricultural land for Rs. 3.00 lakhs in May,2004. The said land is within panchayat limits and more than 8 Kms from a town/city. He has sold the said agricultural land for Rs. 18.00 lakhs in December, 2005. Is there any liability for capital gains tax?
PRASAD
PRASAD
03 March 2008
sir,
from the details I understand that the agri land is outside notified area - So if Mr X can prove that he was using the said land for agri purposes at the time of transfer , he need not worry about any liability towards capital gains. This is because as per definition , agri land is not a capital asset.
from the details I understand that the agri land is outside notified area - So if Mr X can prove that he was using the said land for agri purposes at the time of transfer , he need not worry about any liability towards capital gains. This is because as per definition , agri land is not a capital asset.
03 March 2008
LAND IS NOT AN AGRICULTURE LAND IF IT IS SITUATED WITHIN 8 KMS FROM THE LIMITS OF MUNICIPALITY OR CANTOMENT BOARD OR HAVE A POPULATION OF MORE THAN 10000.PANCHAYAT LIMIT ARE NOT CONSIDERED FOR CAPITAL GAIN PURPOSE.AND BEING AGRICULTURE LAND SUCH LAND IS NOT A CAPITAL ASSET AND ANY TRANSFER OF SUCH LAND DOES NOT ATTRACT CAPITAL GAIN
04 March 2008
Is there any Tribunal or court decision for the above matter?
04 March 2008
THE DEFINATION OF CAPITAL ASSET ITSELF CLEARS THIS POINT
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