Taxation on sale of agricultural land
This query is : Resolved
Sheetal Patel
(Querist)
07 May 2016
It would be my pleasure to seek an expert opinion regarding taxation on sale of agricultural land.
The case is below;
1. Assessee : Farmer not filing ROI (Having PAN)
2. Agricultural land located at : Rural Area away from the limit of municipality
3. Purchased in : December 2015 for a consideration of Rs.30 lacs
4. Sold in : May 2016 for a consideration of Rs.1 cr
According to my knowledge, the above mentioned transaction does not attract any tax liability.
However, I would like to seek your opinion on my knowledge/understanding.
Your reply would be highly appreciated and helpful.
The case is below;
1. Assessee : Farmer not filing ROI (Having PAN)
2. Agricultural land located at : Rural Area away from the limit of municipality
3. Purchased in : December 2015 for a consideration of Rs.30 lacs
4. Sold in : May 2016 for a consideration of Rs.1 cr
According to my knowledge, the above mentioned transaction does not attract any tax liability.
However, I would like to seek your opinion on my knowledge/understanding.
Your reply would be highly appreciated and helpful.
CA VISHNU GAVKARE
(Expert)
09 May 2016
Dear Sheetal,
Your view is correct. Land in specified area is not covered in defination of capital asset, hence not liable for tax.
Your view is correct. Land in specified area is not covered in defination of capital asset, hence not liable for tax.
Sheetal Patel
(Querist)
09 May 2016
Vishnu sir,
Thanks a lot for your reply.
Thanks a lot for your reply.
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09 May 2016
An agricultural land located beyond the specified areas measured arrially are not capital assets:
1. In case of population of nearest municipality is 10000-100000 2 km.
2. In case of population of nearest municipality is 100000-1000000 6 km
3 In case of population of nearest municipality is 1000000 or more 8 km
1. In case of population of nearest municipality is 10000-100000 2 km.
2. In case of population of nearest municipality is 100000-1000000 6 km
3 In case of population of nearest municipality is 1000000 or more 8 km
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