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Capital gain

narendra mhetre (Service) (32 Points)

24 May 2013  

Mr. X purchased agricultural land in Rural area ( land is situated 10 k.m. away from the local limits of Municipality of the Town having population of 5 lakhs )on 05/04/2013 for Rs. 5 lakhs and sold the said Agricultural land for Rs. 10 lakhs on 21/05/13. Plz advise whether the profit on sale of above Agricultural land Rs. 5 lakhs is Taxable under the Income Tax Act.

 4 Replies

Devendra (Chartered Accountant) (4765 Points)
Replied 24 May 2013

Yes. The same is taxable as Short Term Capital Gains.


Devendra Kulkarni

Ishan kewlani (Article) (172 Points)
Replied 24 May 2013

Land covered beyond 8 kms of muncipal limits is not a capital asset & so no capital gain

CA Prateek Garg (CA in Practice) (1395 Points)
Replied 25 May 2013

Your land is Rural Agricultural Land which is out of the definition of Capital Asset. hence its transfer is not taxable.

CA Pooja Agarwal (Chartered Accountant) (3218 Points)
Replied 26 May 2013

the concerned land is not a capital asset.hence no capital gain

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