• SELL of agricultural land

Dear sir i hv sold two agricultural lands in two diff locationswhich are more than 10 kms from urban or cantonment or other notified area but when the sale deed was executed the description of land was given as residential in one case and developing in another case in the sale deeds. will the income exempted as sale of agricultural land or liable to capital gain.
regards rajesh
Asked 1 year ago in Capital Gains Tax from Patna, Bihar
Dear Sir,

For the purpose of definition of Agriculture land under income tax terms mentioned in sales deed is irrelevant. only it should suffice definition as per income tax act. So if it fulfills all conditions of the Income Tax Definition sale of said land shall be treated as agriculture land.
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

Dear Sir,

You can claim both land as sale of agriculture land and there will be no tax liability thereon irrespective of details mentioned in sales deed
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

Dear Sir,
 The same is not a capital assets within the meaning of section 2(14) of Income Tax Act 1961. The description in sale deed is not relevant. 

For any further clarification, please feel free to contact us.
Shiv Kumar Agarwal
CA, Delhi
248 Answers
58 Consultations

5.0 on 5.0

Dear Sir,

You are not liable to pay cap gains.

Shiv Kumar Agarwal
CA, Delhi
248 Answers
58 Consultations

5.0 on 5.0

Dear Sir,

Description in the sale deed is of not much important for the purpose of income tax. 

If the land qualifies for rural agriculture land as per the definition under income tax act, you don't need to worry. It's not a capital asset and does not liable for capital gain tax.

Please feel free to call/revert in case of any doubts
Abhishek Dugar
CA, Mumbai
2774 Answers
112 Consultations

5.0 on 5.0

In your case as per your submissions the same will not be treated as Agricultural Land. It will be subjected to Capital Gains Tax
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

The description will be checked at the time of sale and not the nature at the time of purchase.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

Hello Sir,

They shall be considered as Non Agricultural and liable for Capital gains.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2089 Answers
90 Consultations

5.0 on 5.0

Hello Sir,

While registration if they registered it as residential why didn't you object then stating it is agricultural land. As the AO officer will go by documentary evidences which show that the land was residential and not agricultural.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2089 Answers
90 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA