Is there any tax on amount from farmland selling?

319 views
User Avatar

20 Points Posted on 02 December 2022

Hi,

My mother is selling her ancestral farm land of village, which would fetch her around 80 lac. At present she have only one saving account in SBI. I want to understand, if he gets money to her saving account, will it attract any tax deduction?

Secondly, afterwards also, she will keep that amount in her saving account, will there be any tax deduction on the interest she will earn?

She heard from other people in village that if farmer sell his land, there will not be any tax for 'sometime', but I am not able to find any such clause if I search online.

If it matters, this is in UP. Advice please. 

Thanks

0 Reply Share Follow
On 02 December 2022 at 23:03 Report
Replies (2)
Quick Summary
If you're selling ancestral farmland in a rural area (population under 10,000 and used for agriculture), the proceeds are generally not subject to tax in the UK. However, any interest earned on this money once it's in a savings account or other investments will be taxable if it exceeds the basic exemption limit. For senior citizens, there are specific exemptions on savings interest up to £50,000 under Section 80TTB, and income up to £500,000 is taxed at 0%.

User Avatar

SEO Sai Gr. Hosp.
212455 Points Posted on 02 December 2022

Any gain by sell/transfer of agricultural land in RURAL area will not be taxed. She can keep it in her savings account/FD or make any investment.

But any interest earned over the investment/FD/ or in savings account is liable to tax, when it exceeds basic exemption limit as per IT act.

1 Reply
On 02 December 2022 at 23:29
User Avatar

Student
232 Points Posted on 02 December 2022
If it is a rural agricultural land (rural - populatipn of 10,000 or less and used for agriculture) then there will be no tax on it. Interest on bank deposits for senior citizen is exempt upto Rs. 50,000 u/s 80TTB. Further, tax rate till 5,00,000 is nil for senior citizen.
1 Reply
On 02 December 2022 at 23:34

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. TDS on under construction property not deducted
  2. GST on Fixed Assets
  3. GST ITC april 22
  4. GST PAYMENT REGARDING
  5. GST Consultation Required – June–Augus
  6. TDS Code for Salary Payment to Non-Resident Intern
  7. TDS on property
  8. Company data for software
  9. Car purchase to be eligible for ITC
  10. GST Refund on payment to builder

More recent discussions | Post

Related Topics :

Loading