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Capital Gain On Agri. Land

RAVINDRA GANGADHAR DEVALE (TAX PRACTITIONER) (277 Points)

20 December 2023

My Client Sold Agriculture land. & it is under Municipal Council Any Exemption under capital Gain plz Guide me.

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4 Replies

Sharath chandra (Accountant) (1215 Points)
Replied 21 December 2023

No capital gain tax on sale of agricultural lands.

but be sure if it is an agricultural land. where it is located matters a lot. sometimes people think it is an agricultural land but as per income tax it can fall under urban area.

sabyasachi mukherjee (26083 Points)
Replied 21 December 2023

Within the municipal limits ok.
urban so taxable. post values to have a clear perception.

Musrath Shaik (175 Points)
Replied 23 December 2023

The capital gains tax on the sale of agricultural land in India is subject to certain exemptions. As of my knowledge cutoff in January 2022, here are some key points related to capital gains tax on the sale of agricultural land:

Exemptions under Section 54B:

Under Section 54B of the Income Tax Act, there are provisions for exemptions on capital gains arising from the transfer of agricultural land. The main conditions for availing this exemption include:

Utilization of Sale Proceeds: The taxpayer should utilize the sale proceeds to purchase another agricultural land within a specified period.

For further more detailed information on this topic visit: Agriculture Income Tax: Guidelines and Exemptions

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