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Treatment for profit on sale of agricultural land by company

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Bhagyanagar Hatchereis

21 Points Posted on 19 January 2019

I would like to clarify my doubt regarding, whether profit on sale of agriculture land by a company is taxable or not? And as per sec Sec 54B, exemption is available to an Individual or a HUF. And if Agricultural land in Rural Area in India is not considered a capital asset,weather it can be shown as a fixed asset in balance sheet?

Please clarify......

thanks in advance

Replies (2)

Ruchika Somani

Coaching and Practice in Tax Audit Law

2572 Points Posted on 19 January 2019

Capital gain on transfer of agricultural land by a company is taxable. Yes, as per S.54B exemption is available only to individual and HUF subject to conditions. Agricultural land whether in rural or urban area shall be used for agricultural purpose to avail benefit of S.54B. Yes, agricultural land can be shown either as investment or capital asset in balance sheet.

Aashish Bansal

Article

392 Points Posted on 19 January 2019

Sale of agriculture land is taxable.. there is no exemption for it however you can claim exemption u/s 54B..
Although rural agriculture land is not capital asset.. still while making balance sheet you can show it as fixed asset.. as Income tax only deals with calculation of tax and not maintenance of books of account