wat is the treatment of gain arising from sale of non-urban agricultural land ......as it is not a capital asset do have to consider it in Income From Other Sources.
gsiddarthjain (A.ASSISTANT) (37 Points)
19 March 2010wat is the treatment of gain arising from sale of non-urban agricultural land ......as it is not a capital asset do have to consider it in Income From Other Sources.
Rachit
(Analyst)
(913 Points)
Replied 19 March 2010
Exception 3 Agricultural land in India provided it is not situated—
a. in any area within the territorial jurisdiction of a municipality or a cantonment board, having a population of 10,000 or more ; or
b. in any notified area.
If it satisfies the above, capital gain is tax exempt
nilesh dube
(Service )
(74 Points)
Replied 19 March 2010
Sale of Rural agricultural land is not chargeable to capital gain tax. Even it is not chargeable to tax under any other head of income.
CA Shiv
(Business Controller)
(2987 Points)
Replied 19 March 2010
It is not taxable but pls refer to section 54B..... your question is not having complete details....
https://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54b.asp
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 19 March 2010
Yeshwanth
(Chartered Accountant)
(145 Points)
Replied 19 March 2010
Siddarth,
Note one thing... Once the charging section of capital gains fails... Then the whole income is not at all taxable... So since the non agril land is not a capital asset and hence the charging sec 45 failed, the whole CG is exempted from tax........
bhushan sachdeva
(ca final student)
(73 Points)
Replied 19 March 2010
it is exempt from capital gain tax
sunil
(Articled Assistant)
(29 Points)
Replied 20 March 2010
The only head that charges capital receipts to tax is "CAPITAL GAINS" As it is evident that proceeds from sale of agricultural land is capital receipt and when it doesn't fall under the purview of capital gains revenue has no scope to charge under some other head..
CAclubindia
