Long term capital gain on sale of agricultural land
AMAR KABRA
(Querist) 18 September 2012
This query is : Resolved
CAN A COMPANY CLAIM EXEMPTION OF CAPITAL GAIN TAX ON SALE OF AGRICULTURE LAND OR SUCH AN EXEMPTION IS AVAILABLE TO INDIVIDUALS ONLY?. IF A CONDITION OF 8KM AND POPULATION OF LESS THAN 10000 IS SATISFIED THEN CAN A COMPANY CLAIMS THAT SUCH LAND IS NOT A CAPITAL ASSET AND IS EXEMPT FROM CAPITAL GAIN TAX IN INDIA. SECONDLY INDEXATION BENEFIT WILL BE AVAILABLE OR NOT?
CA AMAR KABRA
Jeevesh
(Expert) 18 September 2012
Mr. Kabra
The benefit of exemption from tax liability from sale of agricultural land is available to company also.
If the condition of 8km etc is satisfied than exemption from tax liability is not available & as the agricultural land than becomes capital asset. Indexation benefit would be available,
