Sale of Rural Agriculture land taxation
This query is : Resolved
29 September 2022
Can the profit from the sale of Rural agricultural land be deemed as agricultural income?
29 September 2022
Why deemed income?
Any gains from Sell/transfer of rural agricultural land is exempt under income tax act...
Any gains from Sell/transfer of rural agricultural land is exempt under income tax act...
29 September 2022
With due respect sir, what I am interpreting is please correct me if I am wrong,
1- Rural Agricultural land is not a capital asset so it is exempt from Capital Gain.
further
2- Sec 10 (1) definition of Agricultural income "(a) Any rent or REVENUE derived from land which is situated in India and is used for agricultural purposes."
My point is Profit from the sale of Rural agricultural land is "a REVENUE" derived from that agricultural land. So, it can be deemed as Agricultural income which is exempt but adds up to total income to define the slab rates.
1- Rural Agricultural land is not a capital asset so it is exempt from Capital Gain.
further
2- Sec 10 (1) definition of Agricultural income "(a) Any rent or REVENUE derived from land which is situated in India and is used for agricultural purposes."
My point is Profit from the sale of Rural agricultural land is "a REVENUE" derived from that agricultural land. So, it can be deemed as Agricultural income which is exempt but adds up to total income to define the slab rates.
30 September 2022
REVENUE derived from land which is situated in India and is used for agricultural purposes.
Here receipt is not from usage of land for agricultural purposes. But it's a capital receipt on sale of land not to be considered as agricultural income.
Such sale is exempt from tax.
Here receipt is not from usage of land for agricultural purposes. But it's a capital receipt on sale of land not to be considered as agricultural income.
Such sale is exempt from tax.
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