Agricultural dry land sales

It is proposed to sell our ancestral agricultural Dry land  located in Tamilnadu measuring an extent of 2.52 acres at a total cost of Rs.13.0 Lakhs. Myself, my wife and my two (employed and tax paying) sons are to sign the sale document.

Will the sale proceeds attract IT payment?
Asked 10 months ago in Income Tax from Tiruchengode, Tamil Nadu
Capital Gains on sale of agricultural land in a rural area is not liable for tax.  Hence, your sale proceeds do not attract IT payment.
B Vijaya Kumar
CA, Hyderabad
290 Answers
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Sir I have seen your query, sorry for the late answer as I was out of station. Your sale will attract capital gains as this was not agricultural land . Only wet agricultural lands are exempt which will satisfy certain conditions. If you need calculations then pl send on our person window I.e modani005@gmail.com
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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Dear Sir,

It will attract tax on the sale proceedings of Land. For Capital Gain Computation we required all details like date of purchase, date of sale, cost of acquisition, cost of improvement, whether land is N.A. or not, Cost of Sales and any expenses on purchase or sale of land.
Vishrut Rajesh Shah
CA, Ahmedabad
231 Answers
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Dear Sir,

It depends if the land is still an agricultural land and cultivation activities is still being performed as per the Land Records. If it is still considered as Agricultural then you may not be required to pay Capital Gain Tax.

But if that is not the case, then provisions of Long Term Capital Gain may be applicable.


Hope this clarifies your query.

Please feel free for any further clarifications.

Thanking You.

Regards,
CA Rohit R Sharma
BCOM, CA, LLB - GEN, CERT. FAFP, CERT FAFD.
Rohit R Sharma
CA, Mumbai
719 Answers
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