Computation of STCG on sale of land & agricultural land

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Junaid (Querist)
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12 November 2010 Hi all !

I wanted to know that, if any person sales plot & agriclutural land within 2 years after the date of purchase, then will it be taxable under STCG? If Agricultural land is outside muncipal area having population less than 10000 then, will it be exempted or taxable and if taxable then, at what rate?

And in case of sale of non-agricultural land and plot, what rate of tax is applicable and whether indexation is applicable to the same..

Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 November 2010 ANS to Q No 1. Agriculture land (which is not in a rural area) and plots if sold within 2 years after the date of purchase, any gain arising out of such transactions will be STCG.
ANS to Q NO 2. : In case of sale of rural land there will be no taxable gain as rural land is not a capital asset.
ANS to Q No 3- In the case of non- agriculture land or plot, indexation is permitted if sold after 3 years of purchase.
In such case LTCG will be taxed @20%.
In case of STCG normal slab rates will be applicable.

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