Capital gain on sale of agriculture land

303 views 4 replies
Dear expert
One of my client sold agriculture land in A.Y.20-21 for 12 lacs. He got it by inheritance...mean from
his forefathers....it's not possible to get its cost of acquisition. He didn't investment anything till now...
Dear sir/madam, kindly guide me in this aspect regarding capital gain treatment and tax exemption means...
Replies (4)
Land is rural agriculture land or Urban agriculture land ?
Urban agriculture land

As mentioned by you, you sold Urban agriculture land for Rs.12 lakhs
You can save tax by investing the capital gain in others agriculture land, but if you are not purchasing any agriculture land capital gain arise on sale is taxable.

Calculation of capital gain:
As this property is old property, You have to take Value of Property as on 01.04.2001 as cost of Acquisition.
Deduct that Cost of acquisition after indexation from sale value (i.e 12 lakhs ) to arrived at Capital Gain.

E.g. If value of land as on 01.04.2001 is 3 lakhs
than indexed cost of Acquisition comes=3,00,000/100*289=8,67,000

and Gain = 12,00,000-867000=333000
taxable

but if you invest that 3,33,000in other agricultural land , than total Gain is exempt.

Dear Expert 

 

I have purchased agriculture land in the year 2007-08 of Rs. 4,20,000/-. It is in very remote area and very less populated. And I have sold such land in 2017-18 in 1,05,00,000/- after converting such agriculture land to non-agriculture as per the requirement of purchaser. And after that I have invested such proceedings in rural agriculture land in the same year. Whether am I liable to pay any capital gain? As agriculture land is exempted from Capital gain Tax.

 

Please advice. Thanks in Advacne

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 08 July 2026
Articles

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details