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agriculure land in rural area

Tax queries 821 views 1 replies

narendra khandelwal

service

204 Points Joined June 2008

hi everybody

A construction co owns a land in rural area. this land was purchased from a mining co.this minig co was showing this land as agriculture land.all the legal papers support that it was a agriculture land but no agriculture activity is being carried out by minig co as well as construction co.

now construction co have sold this land to a housing project developer co for constructing houses on that land

will profit on transfer of aforesaid land be exempted due to it was a agriculture land on legal papers

Replies (1)

Mohit

Practicing Chartered Accountant

80 Points Joined June 2008

Well according to me if a land is situated in rural area den only it is treated as agricultural land and no capital gain is considered on its transfer and although it is shown as agricultural land on papers so profit on transfer is exempted to it.

But the construction company has to convert tht land frm agricultural to housing development land.

Rest all is on assessment officer wat he decides.