Tax liability on Sale of Plot which was received as compensation of agriculture Land acquision?

271 views 2 replies
Dear Professional collegues,
Please give your valuable views over Tax liability on Sale of Plot which was received as compensation of agriculture Land acquision?
Replies (2)

Under Section 10 (37) of the Income Tax Act, Capital Gains on compensation received on compulsory acquisition of urban agricultural land is exempt from tax.

Capital Gains Tax on Sale of Agricultural Land in Rural Area

As per the Income Tax Act, the Rural Agricultural Land has been exclusively excluded from the definition of Capital Asset. Rural Agricultural Land is not a Capital Asset; hence the Income Tax as Capital Gain Tax on the sale of such rural agricultural land won’t be levied, irrespective of the amount involved in the transaction, no capital gain would be levied on the sale of rural agricultural land.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register