Agricultural land taxable
smita n patil (accountant) (24 Points)
21 March 2016smita n patil (accountant) (24 Points)
21 March 2016
Abhijeet Deshpande
(Co-Founder & Manager @ Tax-Yantra)
(1171 Points)
Replied 21 March 2016
Dear Madam,
For an property (land) to be exempt from definition of Capital Asset should be the land assessed that is situated beyond the Specified Area.
Specified Area means:
a) Any area which is comprised within the jurisdiction of a municipality or a Cantonment Board AND which has a population of not less than 10,000; or
b) Any area within the distance specified hereunder measured AERIALLY from the limits of such municipality or Cantonment Board:
Thus, is your case as the population is between 1 lakh to upto 10 lakhs and the distance is more than 6 kms, the said land is rural agricultural land and thus not a capital asset. Hence, net profit arisen on sale of such land is not assessible under Income Tax Act, 1961.
Thank You!
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