25 October 2013
one of my friend have sold agriculture land which is in rural area and beyond 8 Km from municipal limits now i want to solution for following questions: 1) whether exempt or taxable 2) if exempt then under which sections 3) if taxable then how i will be save tax on this income
26 October 2013
If it is rural ag land (check relevant docs to ascertain whether it fits into the definition of rural ag land), it is entirely exempted as it not chargeable to tax.
if it does not fits into the definition of rural ag land but ag is done for last 2 years by assessee or by his parents, then purchase the ag land to get exemption of capital gain
CAclubindia
