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Tax on agricultural land

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Srinidhi

21 Points Posted on 13 May 2013

Hello,

my father is selling a inhirtied agricutural land(ancestral) We are certain that the land is not under 8km of the municipal or cantonnement area and also not under notified area, so my presumpution is that this sale does not incur any capital gain tax. Is my understanding right?

My second question is, should this sale money be shown in income from other sources?(my father is a retired pentioner and has to file returns) and appropritate tax paid according to his tax slab or is this money completly deviod of tax?

thanks in advance

Replies (1)

Guest

Posted on 13 May 2013

If the land is situated at a place more than 8 kms from local limit of any muncipiality etc and not situtated in the within the jurisdicion of any municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name or a cantontment board which has a population not less than 10000.

Then such agricultral land is not capital assest for the purpose of levy of Income Tax( as capital gain , on sale of such assest)

Consideration recieved on sale of capital asset is assessed as per the provisions of capital gain and can not be taxed under Income from other sources