clarification required reg agricultural income

Tax queries 569 views 2 replies

hi frnds, plz anyone clarify this doubt..

Acc to S.2(1A), agricultural income is income from any building(land) that is assessed to land revenue or it is not situated within the Specified area.

But, For the purpose of capital gains, agri land is classified as 'situated within specified area' and 'not within specified area'. If it is situated within the Specified area, then it is said that the income from such land is agricutural income.

Is my interpretation above correct? If so, is it not contradictory?

Plz clarify. Thank U..

Replies (2)

HI Shardha

I think u should not mix the two, the first one is for revenue while for capital transaction i.e. sell or buy, of land it is the 2nd condition.

thank u!!!


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