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Farm sell income

Rajendra Patil (1 Points)

07 January 2021

how much n when the income tax is applicable on the amount received after selling of farm land

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6 Replies

Krishna Chaudhary (Accountant) (4531 Points)
Replied 08 January 2021

Sale of agricultural land is exempted from income tax

rama krishnan (12234 Points)
Replied 08 January 2021

Farm land? whether it's rural or urban?

Smit Shah (524 Points)
Replied 08 January 2021

If it is rural then only exempt

ayusmita (Tax consultant) (5885 Points)
Replied 08 January 2021

If it is rural agriculture land them exempted
if urban government compensation given then exempted
other wise not
if it's your business of selling and buying
or if it's your as stock then comes under business and proffession
if inheritance land sold then capital gain
others apart from this also as same as capital gain

Kapadia Pravin (17249 Points)
Replied 08 January 2021

First you determine whether farm lamd is rural or urban. if it's rural then gain is tax free. Otherwise like normal long term capital asset.

Krishna Chaudhary (Accountant) (4531 Points)
Replied 08 January 2021

Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains. ... Under Section 10(37) of the Income Tax Act, Capital Gains on compensation received on compulsory acquisition of urban agricultural land is exempt from tax.