28 February 2020
Hello team, Am i right to say that sale of agricultural land is agricultural income? as it is mentioned in the act that any rent or revenue derived from land situated in india and used for agricultural purposes is agricultural income.
28 February 2020
Expemption u/s 54B is allowed on sale of agricultural land u/d Capital Gains subject to following conditions. 1. Land must be used for agricultural purpose by individual or parents or HUF for 2 years immediately before the date of transfer. 2. New agricultural land has been purchased within 2 years from the date of transfer and should not be sold within a period of 3years from the date of its purchase.
28 February 2020
An agricultural land in rural India does not form part of the definition of a capital asset and hence, there will be no capital gains on the sale of such land. Also check the definition of Agricultural Income Under Sec. 2(1A) of the Income tax Act where it is mentioned. You may get a clear view on reading that section.
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