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Capital gain on land sold

Tax queries 217 views 3 replies

Agriculture Land taken by Govt. for Road Extention, Compensation received Rs.8 lakhs, is this taxable under Capital Gain?,  And if yes then under which section.

 

Replies (3)

Under the existing provisions of the Income-tax Act 1961, an agricultural land which is not situated in specified urban area, is not regarded as a capital asset.

Hence, capital gains arising from the transfer (including compulsory acquisition] of such  Rural agricultural land is not taxable.

From 01.01.2014 any compensation received for compulsory acquisition of land under the RFCTLARR Act (except those made under section 46 of RFCTLARR Act), is exempted from the levy of income-tax.

All compensations received on compulsory acquisition of land (agricultural or any other) is exempt from income tax.
urban land is taxable
but u have to prove that the land of urban is used for agricultural activity then it's exempted.
again, all rural lands are exempted except lands are used for commercial purposes , like for poultry farms,shops in rural area, rented for commercial purposes,etc
rural converted land are also taxable
again , if u have a house in that rural land it's also taxable


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