Capital gain tax reg

shadab shaikh   22 June 2020

Sale of agricultural land located in urban area will be taxable and sale of agricultural land located in rural area used for agricultural purposes is exempted since rural agricultural land is not covered under section 2(14) of income tax act so if your client has an urban agriculture land than 30lacs will attract LTCG in the hand of mother and transfer of money Rs 30L from mother to daughter is covered under exceptions of sec 56(2)(10) of income tax act and 30L TRF is not taxable .

SDR ASSOCIATES   22 June 2020

The land is in rural area

shadab shaikh   22 June 2020

So the amount received 30L will be exempt as rural agricultural is not a capital asset under sec 2(14) and TRF to daughter 30L is exempt

SDR ASSOCIATES   23 June 2020

K thank u sir