SALE OF AGRICULTURAL LAND SITUATED IN CITY MUNICIPAL LIMITS

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This discussion addresses the sale of agricultural land located within city municipal limits, valued at approximately 4 crore. Key queries revolve around its taxability as income and methods to save capital gains tax. Options explored include investing in capital gain bonds (Section 54EC), purchasing another agricultural land, or buying residential property, all of which are considered eligible for tax benefits.

raghavendra b

raghavendra b (Querist)

25 January 2025 DEAR SIR,

ONE OF MY CLIENT WANT SELL HIS AGRICULTURAL LAND SITUATED IN CITY MUNICIPAL LIMITS.
COSTS NEARLY 4 CR. THE LAND IS AN ANCIENT PROPERTY THE CIRCLE RATE IS NOT PROPERLY KNOWN TO THE SELLER. NOW MY QUERY IS
1. CITY MUNICIPAL LIMITS IS COMES UNDER THE PERVIEW OF TAXABLE INCOME
2. IF YES HOW TO INVEST THE MONEY SAVE CAPITAL GAIN TAX
3. OR PURCHASE ANOTHER AGRICULTURAL LAND
4.PURCHASE OF RESIDENTIAL HOUSE PROPERTY

PLEASE SUGGEST ME

THANK YOU

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 January 2025 1. Yes.
2. Capital gain bonds u/s. 54EC.
3 & 4. Both eligible.

raghavendra b

raghavendra b (Querist)

25 January 2025 THANK YOU FOR YOUR QUICK REPLY,

IF CIRCLE RATE OF THE OLD PROPERTY'S HOW TO CALCULATE IS 2001 RATE WILL BE APPLICABLE.
TDS SHOULD BE DEDUCTED U/S 194IC IS APPLICABLE

REGARDS

THANK YOU

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 January 2025 1. Yes, circle rate as on 01.04.2001.
2. TDS will be applicable u/s. 194 IA over sell of urban agricultural land.

raghavendra b

raghavendra b (Querist)

25 January 2025 THANK YOU SIR

FOR YOUR REPLY

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 January 2025 You are welcome.

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