Sale of rural agricultural land

This query is : Resolved

sunita (Querist)
Follow

23 July 2016 In 1998 rural agriculture land received by a person after death of his parents. agriculture was done on it but person sale his land in year 2009-10 at rs 13lac. 1-how to calculate initial value of land? 2-if there is profit what is tax treatment? 3-sale of land was done by bank transaction.. is there any need of showing in the scheme of undisclosed money and pay tax now... If yes then do explain please

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Expert)
Follow

23 July 2016 Any agricultural land situated in RURAL area is not a Capital Assets hence there is NO capital gain in this. There has been little change in calculation of RURAL are wef AY 14-15. As the sale has been made in FY 2009-10 (AY 10-11) definition of Rural area (applicable upto AY 13-14 will be applicable which says "any area which is outside the jurisdiction of a municipality or cantonment board having population of 10000 or more and also which does not fall within 8 KM of such municipality or cantonment board. Please check location of such land. In my view this is not Capital Assets hence NO capital gain & no need for any disclosure.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now