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Capital Gain On Agriculture Land

15 March 2020

I am Former I sold my Paternal agricultural land for 58 lakh and in the same year if I bought another agricultural land for 16 lakh, would I have to give capital gains when the population of my village is 11 thousand and the land is 3 km from my village.

"What is the role of this rule in this subject" Section 54B

If the cost of the new agricultural land purchased is more than the number of capital gains, entire capital gains are exempt.

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7 Replies

JP SHARMA (Employee) (33 Points)
Replied 15 March 2020

Land should be used for agriculture purposes within 2 years before sale...and you have to pay the tax on differential amount I.e capital gain - pur consideration of new land

VINITKUMARGUPA (ARTICLE ASSISTANT) (129 Points)
Replied 16 March 2020

Transfer of Rural agricultural land is not a capital assets. hence capital gain not apply on transfer of rural agri. land refer section 2(14).

rama krishnan (12234 Points)
Replied 16 March 2020

If it's urban agricultural land then only the stated conditions apply, but if it's rural agricultural land, it's not capital asset and it's exempted

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 16 March 2020

as the population of the village is 10,000 or more then it is considered as RURAL AREA and transfer of agriculture land located in RURAL AREA is NOT within the preview of CAPITAL GAIN

EXEMPT

Spurto Consultancy Services (Consultant) (1891 Points)
Replied 16 March 2020

The land will come under the definition of Agricultural Land in rural area, hence outside the ambit of Capital Gain.

ANKIT JAIN (180 Points)
Replied 16 March 2020

My village is Nagar Panchayat which consists of 3 villages but my land is 3 kilometers away from the Panchayat office but my agricultural land comes in the patwari light number of the village of which three villages my village has become Nagar Panchayat.