LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Short capital gains on trading of agriculture land

Uday (manager) (47 Points)

09 March 2012

I want to buy agricultural land in this month @ Rs. 5 lacs per acre 15 acres = Rs. 75 lacs and sell the same within six months @ Rs. 8 lacs, what will be the short term capital gain implication. My Other Taxable Income is Rs. 4,55,688/- April, 2011- March, 2012 (Financial Year). Is that short term capital gains will be added to my taxable income or seperately, I need to pay short capital gains tax.

Reply
Follow
Share

8 Replies

jaimin shah (Finance Manager) (111 Points)
Replied 09 March 2012

seprately u need to pay short term capital gain tax under the income from capital gains. and in final it will be cumulated after calculating payment of taxes from all sources.

1 Like

Uday (manager) (47 Points)
Replied 09 March 2012

What is % of short term Capital Gains Tax and whether I can pay at the end of the year or immediately on completion of transaction.

Anooj (Chartered Accountant) (2130 Points)
Replied 10 March 2012

There is no fixed % tax for Short term capital gain.

2 Like

Uday (manager) (47 Points)
Replied 12 March 2012

Is that covered under 10%, 20% & 30%. My other income is Rs. 455688/- which is coming under 10% slab. So, short term capital gains will come under 20% & 30% as per slab.

Chetan (Senior Auditor) (172 Points)
Replied 12 March 2012

Dear You have to pay tax @ 20% of the short term you earned, the same is fixed as per section 111A of the income tax act,1961

1 Like

remya (ipcc) (24 Points)
Replied 12 March 2012

i think Mr. Anooj was Right n there is no fixed Rate of tax for Short term capital gain

CA SACHIN VIJ (Chartered Accountant) (112 Points)
Replied 13 March 2012

capital gain on agricultural land attact tax as per the slab rate of tax payer.

Further some exemptions are as follows:

As per sec 54B of Income Tax Act,1961

Any Capital gain arises to an individual for transfer of agricultural land which is held for 2 years by assesse or his parents..!!!!!!!!!!

That capital gain can exempted if is invested in another Agricultural Land with in time limit ..!!!!

This section is applicable to only for individual...!!!!!!!!!!!

so in your case, you can not claim exemption,,,,,as per sec 54B...!!!!!!!!!!

But we can claim exemption as per sec 54EC

For more details refer below

https://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=5a1aac72-fbfb-4645-a4be-e48e8c0cb56c&rdb=sec&yr=e5be6bdb-1fc4-42d6-ac7b-34a44fd65485&sec=54B&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

arumugam.r (manager) (21 Points)
Replied 12 April 2012

sir i purchased an agri land for 4 lakhs on 20/08/2010.now i am going to sell it for 88 lakhs as agri land by april 2012.please guide me how can i get exemption from capital gains in this case.

thank u