Hey, If Agriculture Land hold by assessee since 1992-93 now in 15-16 he converted this land to Non Agriculture land & sold within 1 month from the date of conversion. Now my query is that whether party is liable for Short Term Capital Gain or Long term Capital Gain. (please provide any judgement regarding the same if any).
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Capital gain
Replies (6)
first of all, calculate FMV as on date of conversion. Sale value less FMV will be STCG.... and FMV less indexed COA will be LTCG (exempt from tax).
sale of agriculture land is not taxable as it is not covered in defination of capital assets provided it is situated in an rural area which has been clearly defined in the act.
And agriculture land that is situated not in rural area, capital gain is taxable if the land is used for the period less than two years
so in your case conversion and sale both will be taxable
however if land is situated in rural area sale of it will not be suject to tax.
Thank you
shanky pahoja... please get your facts corrected, because agri. land situated in RURAL area is not subject to tax.
thankyou for pointing the error i meant rural but wrote the incorrect word.
u r wlcm my frnd
Any Judgement is there regarding the same ???
or where it is written under which section ??
pl reply
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