sales of agriculture rural land

sale of agriculture land received by way of inheritance is exempt from income tax

pl advise
Replies (5)

rural agricultural land is not a capital assest so no capital gain and Tax 

Conditions for claiming exemption of capital gain:

1. 2 years prior to sale it was used for agricultural purpose by assessee or parents of assessee or HUF

2. New agricultural land shall be purchased from sale consideration within 2 years of sale

3. And if new asset purchased is sold within 3 years of purchase its cost for calculation of capital gain will be NIL if Cost of new asset is less than Capital gain

4. If cost of new asset is > Capital gain then sale of new asset within 3 years of purchase cost shall be reduced by Capital gain

5. Such gain if not used as above before filing return of the year in which gain incurred before due date then it shall be deposited and proof of such deposit shall be attached with return

6. If within 2 years amount is not utilised for purchase as above it will charged to tax as income in the year in which 2 years period gets over and assessee can withdraw the deposited amount as per scheme deposited in

As per s*x 2(14) Rural Agricultural land is not a capital asset and if any Rural Agricultural land sold in INDIA is Exempt from tax and no need to pay Capital gain tax
ok thanks but conditions for claiming exemption is for which land -rural agricultural land or urban agricultural land
first of all any income from Sale of Rural agriculture land in India is exempt from Tax .. no need to claim separately..
but in case of sale of Urban agriculture land Capital gain tax comes into force..
Based on nature of asset (it means Long-term or short term )u have to invest capital gain amount in certain Investments like Purchase of Residential house property or invest in NHAI bonds or RECL bonds etc and claim exemption as per sec 54EC,54F and 54B

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