Sir, I want to sell my father's agriculture land and want to invest in equities. Do I need to pay any tax on sale amount. Can u please tell the procedure to save tax. Eg : If I sale agricultural land for 1000000 lakhs do I need to pay tax if I ingested in Share market.
What is the effect of demonization if I invest in shares which acquired through sale of my father's agricultural land which he owns over 30 years.
If tax applicable ,How much we have to pay if we sold for 2000000 lakhs ,which has to be share by 4 family members.
Need to check whether your father is an agriculturist or not. If he has only agricultural income previously and has satisfied the conditions laid down in Income tax act then the sale proceeds will be treated as agricultural income and exempt.
After considering the above conditions then can advise .
Sir,
To derive at tax amount need following details :
A) purchase date
B) purchase amount
C) sale date
D) sale amount
E) whether agriculture land ( if yes whether use for agriculture purpose ?)
F) any other cost incurred on sale or purchase or for any construction than year and amount of such construction..
By birth my father is father and the land he using for agricultural for past 30 years
Farmer
My father is farmer and he didn't have any other source of income.... He is using this land for past 30 years. Now I want to sell it for 20-25 lakhs and can I invest in shares without TAX
Not taxable. You can invest it any where without payment of tax.
Not taxable. You can invest it any where without payment of tax.
Yes then you can show the agricultural income from sale and can transfer the amount to your account and use the same for trading in shares
If it is situated in rural area as defined in income tax act, then you don't need to pay capital gain taxes. However, if it is an urban agricultural land you will have to pay tax if you invest in stock market and don't avail exmeption under section 54B 54EC etc.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hello Sir,
If it is an agricultural land as per municipal and income tax records then No tax shall be payable on it. In that case feel free to invest it in equity shares in his name.
If you want to invest in your name then you will be required to prepare a Gift Deed in your name.
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
Hi,
If the land is a rural agricultural land, then the income therefrom is tax free. You can invest the sale consideration in shares. However, if it is urban agricultural land, then it is liable to tax. If you want to claim an exemption, then you will have to invest in another agricultural land.
Trust this clarifies your query.
Regards
Keerthiga Padmanabhan
M.Com., CA, LLB
