Profit on sale of agricultural land outside specified area

Vinod (CA in Practice) (445 Points)

11 June 2012  

Dear Friends,

If a person transfers agricultural land outside the specified area and derives a profit of Rs. 40 Lakhs, is it taxable under the income tax act ?

Agricultural land outside specified area is not a capital asset, and hence the profit is not a capital gain.

He is not a real estate business man and the land was not a stock in trade. So it is not a business profit also.

My doubt is , is it taxable under "Income from other sources" ? Or is it not taxable at all ?

Please share your views..

Thanks in advance..

vinodaca74 @