Tax on sale

Hi

I would like to understand the tax liabilities on sale of land. If a non-agricultural land, which was inherited from father and in rural area, is sold, what taxation or other financial liabilities does it attract? In case of no tax, will the person still have to declare the income?

Thanks!

Replies (3)
  1. As I understand, capital gain on sale of rural agricultural land alone is exempt from tax. If such land is not an agricutural land (even in rural area), tax liability arises on capital gain
  2. If such land is a long-term capital asset, then tax @ 20% + cess and if it is short-term capital asset, then tax at applicable slab rate would be leviable.

Thanks. In that case, even point 2 would be relevant only for non-agriculture land.

Again, if a non-agriculture land is an inherited property (post death), does it follow the same definition for short and long term assets, and same tax rule.

  1. If such asset is an inherited property, then cost of acquisition to the person who originally purchased the property (i.e. father in this case) would be relevant
  2. Period of holding (to know whether asset is long/short-term) would be from the date of purchase by the original purchaser

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