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Taxability of rural agricultural land
rural agricultural land is not capital asset hence no capital gain arise but also section 10 does not exempt it either and gain on transfer of rural agricultural land meets the definition of income as well..as in my view it should be treated as income from other source because income from other source is a residual head any income which does not find it place in any of four heads should be included in income from other source.now i want you people to rectify me but with proper reference if i am wrong....because i am really confused how everyone says it is not taxable based on it not capital asset
Replies (2)
Quick Summary
Rural agricultural land in India is specifically not regarded as capital asset. accordingly transfer of such asset shall be regarded as a transfer not chargeable to tax and outside the scope of Income for the purpose of Income Tax Act
Practically, some people tax a conservative approach and report the sale proceeds under Exempt Income
Practically, some people tax a conservative approach and report the sale proceeds under Exempt Income
Agreed with Raj Sir
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