Sale of Agricultural Land

Abhinav (software consultant) (25 Points)

23 May 2011  

Hi,

My father wants to sell his ancestral agricultural land (not under municipality limits). I have two questions:

1. What is the tax implications on the sale proceeds of the agricultural land under Indian tax laws.

2. He plans to prepay the home loan taken on the under construction residential property in a city, which is in a joint name (myself and my father). Are there any issues in doing this? Or any tax to be paid in this case?

 

Thanks,