Agricultural income or capital gain
Aravinda
(Querist) 22 June 2012
This query is : Resolved
Namaste
I am ARAVIND G from Bangalore, need some guidance from your end.
My father-in-law has income from Pension, House property,Professional and Other Sources.
He and his brothers has sold Ancestor agricultural land near Outskirts of Bangalore for Rs.240000/- and his share is of income is Rs.80000/-.
My query is, Rs.80,000/- has to be treated as agricultural income or long term capital gains??????????
Please answer my query and oblige
aravindagprasad@gmail.com
A V Vishal
(Expert) 22 June 2012
Agricultural land is not a capital asset and does not attract tax subject to certain conditions. LAND qualifies to be agricultural land if it is not situated in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name) or a cantonment board, and which does not have a population of 10,000 or more according to the last preceding census which has been published before the 1st day of the previous year in which the sale of land takes place, and it is not situated less than eight kilometres from the local limits of any municipality or a cantonment board.
If, by the test above, the land is agricultural land, it will not form part of the definition of a capital asset and so there will be no capital gains on the sale of such land.
Agricultural land not forming part of the above will be a capital asset and sale of which will attract capital gains tax subject to Section 54B.
Shonee Kapoor
(Expert) 23 June 2012
The explanation of Ld. Vishal is new to me and has enriched my knowledge on the subject. Thanks.
However, it is better to get in touch with local advocate to see whether the same is subject to capital gains tax or not.
It is not agricultral income.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
