If the land is agricultural land then no capital gain tax shall be applicable on the said land.
Selling agricultural land in Butibori Nagpur
I want to sell agricultural land situated at gaon rui khairi mouza bori butibori area nagpur maharashtra which comes in nagar parishad buti bori so i want to know the Arial distance between nagar parishad buti bori and my above described land so that that i could know about the gain tax if any which i have to pay to income tax or if i will not have to pay any gain tax after selling this property
Asked 7 years ago in Taxation
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3 Answers
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains
2)
Conditions you need to meet Under Section 54B for claiming exemption from Capital Gains
- The land which is being sold must have been used for agricultural purposes by the individual or his parents or by the HUF for a period of 2 years immediately before the date of transfer.
- Another land for the agricultural purpose should be purchased within a period of 2 years from the date of transfer of this land.
- The new agricultural land which is purchased to claim capital gains exemption should not be sold within a period of 3 years from the date of its purchase.
- In case you are not able to purchase agricultural land before the date of furnishing of your Income Tax Return – the amount of capital gains must be deposited before the date of filing of return in the deposit account in any branch (except rural branch) of a public sector bank or IDBI Bank according to the Capital Gains Account Scheme, 1988
The capital gains tax is not calculated by the distance of the property situated from it's location to the town area.
It is calculated on the basis of the difference between purchase price and selling price and time period since the property was purchased or in your possession etc.
