Taxation on sale of agricultural land
This query is : Resolved
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.
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.
09 May 2016
Vishnu sir,
Thanks a lot for your reply.
Thanks a lot for your reply.
Message likes :
1 times
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
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITDS U/S.194T of Firm
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Difference between Date of Payment and Date of Deduction?
- Bank details not Visible on Traces Portal
- Taxability of Partnership firm for FY 2025-26
- TDS AND ITR ISSUE
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
