What would be the capital gains on sale of 1.5 acres of inherited rubber plantation in a rural area? This land has been under cultivation for more than 50 years and is still under cultivation, with 300 rubber trees of 15 years of age under tapping. The buyer too is a farmer. But the land is registered as residential land and not agricultural land in the panchayat records. So, is capital gains tax applicable for the sale proceeds? It is located in a rural area under village panchayat.
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Capital gains on sale of rubber plantation
Replies (3)
AO Will proceed based on the registration documents. as per the document IT is urban agricultural land and capital gain will arise from the transfer
As per the records, it is residential land located in an absolutely rural area and not anywhere near an urban area. This plot as well as the surrounding ones have always been under rubber cultivation. So, will it qualify as rural agriculture land, since it is located in rural area and the purpose for which the land has been used has always been and will always be for agriculture. I
Generally, if the land is located about 8 KM or more from the boundaries of any city area, it comes under rural zone. To be more specific check the revenue records of the land or inquire with village officer.
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