Very Urgent.......

1. CAPITAL GAIN TAX WILL BE APPLICABLE  ON THE ASSESSE SELLING RIGHT OF TENANCY.

2. CAPITAL GAIN SUBJECT TO PROVISION OF THE RELEVENT SECTION (ON SALE OF AGRICULTURAL LAND WITHIN 8 KMS FROM MUNICIPAL LIMIT)

TRUST CAN SAVE TAX BY BUYING OTHER AGRICULTURAL LAND--------------

PLEASE READ THE CAPITAL GAIN CHAPTER FOR DETAIL

1. CAPITAL GAIN TAX WILL BE APPLICABLE  ON THE ASSESSE SELLING RIGHT OF TENANCY.

2. CAPITAL GAIN SUBJECT TO PROVISION OF THE RELEVENT SECTION (ON SALE OF AGRICULTURAL LAND WITHIN 8 KMS FROM MUNICIPAL LIMIT)

TRUST CAN SAVE TAX BY BUYING OTHER AGRICULTURAL LAND--------------

PLEASE READ THE CAPITAL GAIN CHAPTER FOR DETAIL

Dear Anand Sir, suggest me the way out to save the tax in the hands of Assessee selling the tenancy rights.....

dear sirs,

under sec 2(14)

any rural agricultural land which is not situated under the jurisdiction of muncipality or a cantonment board having a population of 10,000 or more or any notified  area is not a capital asset.

so if ur assessee's land follows above principle then there will be no capital gain taxable as it will not be treated as transfer of capital asset.

pls correct me if i am wrong.

regds

to save tax a solution can be to purchase another rural agricultural land (as specified in the section)

1) u will get deduction of the cost of accqusition

2) when u sell it there will be no capital gain taxable

pls let me know if i am wrong

thanx