what will be capital gain tax of Sale on agricultural land in rural area?
Can it be exempted from tax?
Pls guide.
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Capital gain tax on sale of Agriculture land
Replies (9)
Sale of agriculture land is exempted from capital gain tax
Thanks ...Is profit on sale of agricultural land required to reinvest in new agricultural land to save capital gain tax?
No, It is not regarded as capital asset in Income Tax Act so, you don't need to invest profits in any land or property.
Rural agricultural land is not a capital asset and therefore gain arising from it will not be taxed.
I/s 10(37)
however this exemption is only available to Individual/HUF
I/s 10(37)
however this exemption is only available to Individual/HUF
rural agricultural land is not a capital asset as per 2(14) of income tax act hence not taxable
@ Moneesh the clause (14) of section 2 is from the Finance Act with effect from 01/04/1970 .
if it's rural agricultural land, then it's not capital asset and capital gains arises. but if it's urban agricultural land, then capital gain tax is to be paid and to avoid capital gains tax, either invest in agricultural land or residential property to avail deduction under 54B and 54F respectively
thank you and congratulations
rural agriculture land is not a capital asset..therefore no liability for capital gain
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