Tax treatment of sale of agri land ( rural ) as plot

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Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2012 i had Ancestral agriculture land in rural area which i would like to sell as plot for construction. is it chargeable to tax? if yes, what is tax treatment. and suggest for tax planning

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2012 If you sale the land which has been used by you within 2 years from the date of NA/Sale, as the land is in Rural Area, no capital gain will arise.
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The Fair Market Value/ Jantri Value on the date of Conversion will be taken as cost
and the sale price of plots will be taken as Sales Consideration to calculate Business Profits.
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Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2012 Thanks bafnaji

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