How to decide if land is agriculture land ?


First of all, it must be noted that the Income tax Act has not defined word “Agriculture Land” . Only the term “agriculture income” is defined which is further made exempt from tax  u/s 10 . It has also been judicially settled in case of Kalpetta vs CIT 185 ITR 318 that burden of proving that a land is agriculture  land on the date of transfer is on assessee.

The second most important point to note is that sale of not all agriculture land is tax free as  its sale will be charged to tax as capital gain if such agriculture land is situated within the area defined by government under section 2(14) of the Income Tax Act which was recently tweaked vide Finance Act 2013.

This content is for annual members only.

Log In Register

Comments are closed.