profit on dsale of agriculture land

for availing tax benefit on sale of agriculture land in rural area is it necessory that it was put to use for agriculture purpose ?

for example: I purchased an agriculure land in rural area.I do not use this land for agriculture purposes. after few months i sold this land. what will be impact on profit?

Replies (5)

The actual user to which the land is being put would furnish prima facie evidence of the true nature or character of the land and, therefore, whenever a question arises whether a particular land is agricultural land or not, primarily regard must be had to the purpose for which the land is being actually used at or about the relevant time and that would ordinarily provide a satisfactory answer to the problem - Rasiklal Chimanlal Nagri v. CWT [1965] 56 ITR 608 (Guj.).

n ‘Agricultural land’ should comprise the following characteristics :
a. It must be a land;
b. It must pertain to or be connected with cultivation;
c. It must involve expenditure of human labour and skill for the purpose of cultivation or for keeping it in a cultivable state - Tea Estates India (P.) Ltd. v. CWT [1966] 59 ITR 428 (Cal.)

it is not taxable as the land in rural area does not include in defination of land as per Sec 2(14) of IT act 1961

Rural agriculture land is not a capital asset.hence no ques. of capital gain arises.

Originally posted by :gaurav gupta
" Rural agriculture land is not a capital asset.hence no ques. of capital gain arises. "


 

There is no Capital gains since rural agri land is not included in the transfer definition i.e 2(14)

Originally posted by :S.Srinivasaraghavan
"

as agriculture land is nt an capital assets  u/s 2(14) subject to criteria fullfilled,so no ques arise regarding short term n long term capital gain,bt m confused wht eill be the treatment of profit arise on sale of land ?

will it be taxable as normal profit ?

 

 

The actual user to which the land is being put would furnish prima facie evidence of the true nature or character of the land and, therefore, whenever a question arises whether a particular land is agricultural land or not, primarily regard must be had to the purpose for which the land is being actually used at or about the relevant time and that would ordinarily provide a satisfactory answer to the problem - Rasiklal Chimanlal Nagri v. CWT [1965] 56 ITR 608 (Guj.).
n ‘Agricultural land’ should comprise the following characteristics :
a. It must be a land;
b. It must pertain to or be connected with cultivation;
c. It must involve expenditure of human labour and skill for the purpose of cultivation or for keeping it in a cultivable state - Tea Estates India (P.) Ltd. v. CWT [1966] 59 ITR 428 (Cal.)

"


 

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