CAPITAL GAINS TAX ON SALE OF AGRICULTURE LAND
BHUPAL SINGH
(Querist) 22 September 2009
This query is : Resolved
Dear Sir,
Please add another Question to my earlier queries raised in connection with Sale of Agriculture Land--
e. Will the Sale of Inherited ( from Parents ) Agricultur Land attract any Capital Gains Tax ? If so, how is this to be calculated ? The Land was inherited by me from my parents who in turn inherited from my Grand Father after his demise in 1952. My Grand Father inherited it from his father about 80-90 yrs ago.
Major Bhupal Singh ( Retd.)riven
adv. rajeev ( rajoo )
(Expert) 22 September 2009
Dear Major,
In the income Tax Act sec 2(14) defined the capital asset : The term " Capital asset" means property of any kind held by an assessee, whether or nr not connected with his business or pofession, but does not include (a)...(b)... (c) Agrl., Land in india, not being situated(i) in any area which is comprmised wthin the jurisdiction of a municpality or a contonment board and which has a population of not less than 10,000 or more; or (ii) in any area within such distance, not being more than 8 kms, from the local limits of any municipality or any contonment board refered to in item (i) as the central govt., may,having regard to the extent of and scope for, urbanisation of that area and other relevant consideration, specify in this behalf of notification in the official Gazette.
Any transfer of agrl., land in india effected before 1/3/70;( sec 47(iii). However agrl., land transferred on or after 1/3/70 will also not fall within the capital gain tax, as the agrl., land is specifically excluded by sec 2(14)(iii)from the purview of capital asset, with some exceptions(sec 47(viii)riven
Raj Kumar Makkad
(Expert) 22 September 2009
No capital tax is payable on the transfer of agricultural land.riven
BHUPAL SINGH
(Querist) 23 September 2009
Dear Sir,
I am grateful to you all for the advice rendered.
Inconvenience is regretted.
With reagrds & best wishes to all of you,
Sincerely Yours,
Major Bhupal Singhriven
BHUPAL SINGH
(Querist) 23 September 2009
Dear Sir,
I appreciiate the prompt response and your valuable advice.
With thanks & regards to all,
sincerely Yours,
Major Bhupal Singhriven
Sivadas Chettur
(Expert) 27 September 2009
Gains on sale of Agri land is generally exempt from tax. But urban agri lands are taxable ie lads lying in municipal, corporation, cantonment areas etc. Please also note that the areas lying within 8 kms from the municipal/corporation limits and notified by Govt are also taxable. Thus depending upon the area you have to decide the taxability.
If it is taxable then u will have to compute the gains or loss. For cost you may opt for the market value as on 1-04-1981. Pl note that there is no cost for u since it is inherited but the cost to the previous owner can be taken or market value on 1-04-81 as mentioned earlier.
sivadas chettoor.
siva208@yahoo.com
BHUPAL SINGH
(Querist) 27 September 2009
Dear Sir,
I am grateful for the valuable advice of the lerned legal luminaries.
God bless them all. With regrds,
Major Bhupal Singh, Veteran
Australia
