hi there,
greetings to everyone.
I have a 3 acre land in a village. it is an 'agricultural' land. It is more than 8 km away from both Panvel and Pen. the land has been owned by me for 9 years. I intend selling it now.
My question to you gentlemen is, do i need to pay capital gains tax?
My second question is - can I gift some of the monies to my children without attracting any taxes?
I will be very greatful if you all can advise me on this
kind regards
VR
Capital Gains tax can arise only in case if there is a transfer of a capital asset .
As per Section 2(14) of the income tax act,1961 agricultural land is excluded from the definition of capital asset provided if the land is not situated in any area within the jurisdiction of a municipality OR the agricultural land lies within a cantonment board having a population of 10,000 or more OR the agricultural land lies in a notified area
Please check if ur land lies in any of the above areas
Ok......
Thank you Mr. Harshal for your prompt reply
My land does not lie in any of the above mentioned areas.
However, I would request you to kindly explain in a gist - the concept of notified area.
I just want to be doubly sure.
regards
CCI
Pro
CAclubindia
