Sale of agreiculture land in rural area

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217 Points Posted on 14 June 2021

Sir/Madam,

 

How to calculate tax on sale of agriculture land in rural area 

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On 14 June 2021 at 13:53 Report
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In India, agricultural land situated in a rural area is generally not classified as a capital asset under Section 2(14) of the Income Tax Act. Consequently, any profits made from its sale are typically not subject to capital gains tax. This means you usually don't need to calculate capital gains or pay tax on the sale of such land.

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Chartered Accountant
24588 Points Posted on 14 June 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.
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On 14 June 2021 at 14:28
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Learner
2398 Points Posted on 14 June 2021
As it is not a capital asset, you no need to calculate gain as per IT Act. and there will be no tax on gain on sale of rural agri land in India.
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On 14 June 2021 at 18:37
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Student
252 Points Posted on 14 June 2021
Agriculture land is not capital asset as per section 2(14) hence no capital gain tax on sale of agriculture land
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On 14 June 2021 at 21:10

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