Whether sale proceeds from rural agricultural land is exempted? if not it will be taxable under which head of income?
Whether sale proceeds from rural agricultural land is exempted? if not it will be taxable under which head of income?
its not taxable as its not an capital asset
Sec 2(14) - ‘capital asset’ means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include—
(i) any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profession;
(ii) personal effects, that is to say, movable property (including wearing apparel and furniture, but excluding jewellery) held for personal use by the assessee or any member of his family dependent on him.
Explanation. - For the purposes of this sub-clause, ‘jewellery’ includes—
(a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel;
(b) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel;]
[(iii) agricultural land in India, not being land situate—
(a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or
(b) in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette;]
[(iv) 6 -1/2 per cent Gold Bonds, 1977, [or 7 per cent Gold Bonds, 1980,] [or National Defence Gold Bonds, 1980,] issued by the Central Government;]
[(v) Special Bearer Bonds, 1991, issued by the Central Government;]
[(vi) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government;]
yes sir is ok
its not taxable as its not an capital asset
exempt from tax.
It is completely exempt
| Originally posted by :Ankeeta | ||
| " | It is completely exempt | " |
Question of Completely or partially does not arise because its not a capital asset. its totally exempt.
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