Gain on agricultural land sold
NARAYAN CHANDRA BHOWMIK (43 Points)
12 July 2021It is not in the list of exempted income u/s 10 etc.
Now my query is that whether the Gain is taxable income or not.
Please advise.
NARAYAN CHANDRA BHOWMIK (43 Points)
12 July 2021
Asif Shaikh
(80 Points)
Replied 12 July 2021
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 12 July 2021
Gain is not taxable because rural agricultural land is a not a capital asset.
NARAYAN CHANDRA BHOWMIK
(43 Points)
Replied 12 July 2021
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 12 July 2021
Section 45 is the charging section for capital assets and since rural agricultural land is not at all a capital asset as per section 2(14), no specific exemption has been provided u/s 10 I think.
Other views, if any, are welcome.
Deepa B
(Practicing Chartered Accountant )
(573 Points)
Replied 12 July 2021
Agreed on the point that the gain of said nature are mentioned in the list u/s 10.
But if something has to be taxed under the head capital gain then there has to be a
" transfer of capital asset". Unless these criterions are satisfied one cannot tax such income under the head of capital gain.
In the given case, rural agricultural land itself is not considered as a "capital asset" which is one of the criteria. Though there is a transfer, it is not a transfer of capital asset. For understanding purpose one can say it is transfer of other than capital asset. Hence the charging section is not invoked. So it is not taxable under the head capital gains
Deepa B
(Practicing Chartered Accountant )
(573 Points)
Replied 12 July 2021
typo error " are not mentioned in the list u/s 10"
i am Kashif
(372 Points)
Replied 12 July 2021
Balamurali Unnithan MS
(STUDENT)
(1631 Points)
Replied 14 July 2021
NARAYAN CHANDRA BHOWMIK
(43 Points)
Replied 14 July 2021