Capital Gains


An Agricultural land as defined in the Income Tax Act sold for commercial purpose(inspite of exemption under section 10), is taxed? If Yes, under which head of income it is charged, and why?

Anonymous Asked on January 11, 2018 in Taxations.
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1 Answer(s)
Best answer

Rural agricultural land is not a capital asset and gain is not taxable. The further conversion into commercial ie non agricultural need to check the question of law. If its taxed it will depend on assessee , his business , intent etc..

In normal circumstances it will be taxed as capital gains

TaxIQ Answered on January 12, 2018.
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