capital gain tax on agriculture land

Interesting.  If somebody owns such a land, then he will have to meticulously measure the land and find out what portion falls within the limit and what falls without and work out CG proportionately.

Originally posted by : Member
	Interesting.  If somebody owns such a land, then he will have to meticulously measure the land and find out what portion falls within the limit and what falls without and work out CG proportionately.

thnx a lot for ur reply. is there any ircular / case law where it is clear that proportionate capital gain is to be calculated? the income tax act is silent about this.

Dear Nimesh Bhai,

Income Tax Act specifies the dual treatment itself by prscribing the measures for rural land and urban land.

Your case is interesting  and to resolve the issue permanently   (keeping in view the the prospective buyer, also),  you may sell the land in two parts, by entering into 2 sale deeds, one for rural land and the other for urban land . 

Originally posted by : Paras Bafna
	Dear Nimesh Bhai, Income Tax Act specifies the dual treatment itself by prscribing the measures for rural land and urban land. Your case is interesting  and to resolve the issue permanently   (keeping in view the the prospective buyer, also),  you may sell the land in two parts, by entering into 2 sale deeds, one for rural land and the other for urban land.

thanx a lot parasji,  but the catch is that the deal has already been made, consideration has been passed, deed has been registered. i am asking for ascertaining my advance tax liability. any further clarification will be most welcome.

1. If the sale deed has already been registered ,  if possible prepare an agreement of prior date in between the parties , showing the measurements and rates agreed per Acre/Hectare. This will support your calculations.
 

2. The factual position as regards measurement may be obtained from the government officer (Patwari or hakim)

3. You may show your capital gains in two parts covering the full value of consideration and cost.  

u can calculate tax only for the part of land situated in the more than 8 km away, and u should also take the cost of land propertonatly for that part of that  land only. 

I agree with Bafan Sir.

capital gain is calculated on part of land which is within the specified limit... on proportionate basis