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Sale of rural agricultural land-taxability

Tax queries 636 views 2 replies

I have agricultural land situated forteen kilometers from the local municipal limits.

The land was accquired in 2006 and was used for horticultural and floricultural purposes

If I sell this property can any tax liability in the nature of capital gains or such arise.

As per section 2(14) Rural agricultural land does not come under capital gains and is not exigible to any kind of tax.

The document also classifies the land as "thottam" the normal word used for the agricultural land.

I do not prefer to reinvest the sale proceeds in any agricultural property.

My query is how to mange this situation.

Please ....

Replies (2)

If the distance between the land and  municipal boundary is more than EIGHT KM, measured axially;  than it is termed as rural agricultural land.

No capital gain tax liability over sell or transfer of rural agricultural land.

Sale of agricultural land in rural areas not a Capital asset.


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