Capital gains tax on residential land used for agricultural purposes

Dear Sir,

I have sold land which in the government records is shown as residential for purposes of stamp duty. However, we have been using it for agriculture for the past 8 years. Would I be liable to capital gains tax on the sale of this land.

PS: The land lies withinn 8kms of the municipal limits.

asked Apr 18 '11 at 01:06 by Sam 1666

If the land lies in municipal limits, it will be considered as capital assets and its sale will result into capital gains and income tax is payable on the same.

However you may invest further to save income tax arising due to sale.

answered Apr 19 '11 at 07:32 by Pankaj Batra 5.2k320


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Asked: Apr 18 '11 at 01:06

Seen: 2,007 times

Last updated: Apr 19 '11 at 07:32