TDS on sale of rural agricultural land

1180 views 2 replies

Can some one Please Clarify. 

1. Is it correct  no CGT and no TDS is applicable  in sale of rural agricultural land in Punjab

2. How do you show in IT   return  that no CGT and TDS is applicable - forms and process?

3. How and where do you get a certificate to show no Tax liability for the above?  I need the certificate for bank purposes. what is the process and forms?

4. is there a expedited process for 1,2, and 3  and what is it?

Thanking all replies in anticipation 

Replies (2)
Rural Agricultural land in India is not considered a 'capital asset' as per sec 2(14) of the income tax act. As a result capital gain tax is not applicable on the same when it is sold.

TDS is also not applicable for the same reason and u/s 194IA which talks about TDS on sale of immovable property, sale of rural Agricultural land in India is excluded.

Inorder to get a certificate to show to the bank you can consult a practising CA in your area who will guide you in the matter.

what are the likely costs for this . 

Thanks 

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