We had ancestral agriculture land in Raigad Dist. It is 22 kms from any urban center ,.
Pl advise us if we are exempted from paying capital gains tax under section 22(14) III. and not required to pay any tax or purchase 54F Bonds.madhuzende@hotmail.com
Pl advise us if we are exempted from paying capital gains tax under section 22(14) III. and not required to pay any tax or purchase 54F Bonds.madhuzende@hotmail.com
Not all agricultural land is TAX FREE . While sale of “rural agricultural land” is tax free ;”Urban” Agricultural Land is not tax free. So , you should know when is the agricultural land is ” Urban” in nature.
This is defined in Section 2(14)(iii) as follows :”agricultural land in India, not being land situated-(a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or(b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board …”
As per your question, it appears that land in question is agriculture, therefore there can not be any question of capital gains in this case. The sale will be tax free. Hence question of 54 F Bond does not arise.Enjoy!
About taxworry
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PLEASE ADVISE US IF AGRICULTURE LAND HAS BEEN ACQUIRED BY GOVT. AND SPECIAL LAND ACQUISITION OFFICER (UNDER COLLECTOR OFFICE DEPT) HAS DEDUCTED TDS @10% ON TOATL PAYMENT OF LAND COST BY GOVT WHERTHER WE ARE EXEMPT FROM CAPITALGAIN IF YES UNDER WHICH SECTION WE SHOULD CLAIM INCOME TAX(TDS) REFUND FROM AO
THANKING YOU
SANTOSH P JAIN
DHULE
Please advise for sale of Tax free agriculture land , distance of 8 Km from Muncipal limit is still same or increased .
is short term capital gain earned on sale of rural agricultural land is taxable or not
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