Bhagyanagar Hatchereis (1 Points)
19 January 2019I 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
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 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)
(698 Points)
Replied 19 January 2019
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