My friend needs to sell a piece of agricultural land that he owns. I have a couple of questions related to agricultural land sale:--
1. Is the rate of Capital gains taxation for agri lands same as that of other residential properties? There is no construction in the present land that my friend intends to sell.
2. The buyer is in a hurry to complete the registration in anticipation of certain regulatory changes in the agri land buying process, and the buyer says he will make the payment later, as per a drafted legal agreement. In such a case what will be the tax implications for the seller? Because the land transfer would have already happened when the seller receives payment, how will the seller be able to account for the source of payment received? Can he quote the agreement that was drafted earlier to prove that the payment was for the sale of the earlier land?
CAclubindia
