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
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.
Thanks for your reply sir, but pl reply me specific in my case I purchased 2 lands mentioned in deed as agricultural land in yr 2007 & 2011 in two diff districts, I sold both lands in yr 2015 but the description of land given in sell deeds (of sold lands) was written as residential in one district and developing in another district. The lands are much more away than 10 kms from municipal, cantonment or other notified area, I was doing agriculture on the said land which income has been shown as agricultural income in my I.T Returns
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
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.
Dear Sir,
You are not liable to pay cap gains.
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
In your case as per your submissions the same will not be treated as Agricultural Land. It will be subjected to Capital Gains Tax
The description will be checked at the time of sale and not the nature at the time of purchase.
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
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
My Request to Respectable Mr Shyam Sunder Modani and Respactable Mr Rohit R Sharma, to kindly reconsider your replies, because as per my knowledge and findings: For an agricultural land only aerial distance from urban area or cantonment and population is relevant and deeds are irrelevant according to Section 2(14) of Income-tax Act, 1961 I am not complaining, but I am asking u to pl reconsider ur replies so that my fear or doubt could be removed if you prove me right after going through the facts which you may have possibly skipped or I may be wrong with my findings, so that I want to get it clarified and nothing else. Pl not take my question otherwise Thanks and regards