Dear Members of the Forum
I am writing to seek advice from experts on this forum on exemption from capital gains on sale of agriculture land. I am in the process of selling my agriculture land which is located in a very remote rural area and is classified as agriculture land. The property meets the descripttion of the Income Tax authorities as a rural agri land as per population, distance from town / municipality, etc. I have part teak and gooseberry plantation and I also cultivate field crops like blackgram in this land. All cultivation of teak, gooseberry and blackgram is under 20% of the total land and the remaining 80% of the agri land is vacant agri land only. I have also filed Income Tax returns disclosing agriculture income. I have the following queries
- What is the definition of agri land from an cultivation perspective for me to gain exemption from capital gains to avoid paying capital gains taxes or avoid re-investment in another agri land
- Will sale of agri land with commercial tree crops be exempted from capital gains
- Will tree crops like teak and gooseberry be counted as agri crop or treated as commercial tree crops
- Since I am currently involved in cultivation in only 20% of the total extent of land, will I get exemption from capital gains in case of sale for the entire 100% of the land or for only 20% of the utilised land
Shall appreciate hearing views from experts on this
Regards
P S Krishnan
Chennai
CAclubindia
