Sir
I am owner of 1.20 Acre of rubber cultivated land located in rural area in KERALA. The land was purchased during September 2005 at a cost of Rs 135000/_. Now I am planning to sell the land about 50 lakh Rupees. Since land is located in rural area and cultivated rubber will it considered as agricultural land?. If so whether I am eligible for exemption of LTCG Tax under rural area agricultural land.
Hope to hear u soon
Answers!
Hi Krishnan
Agricultural Land situated in Rural area is not a Capital Asset
Hence,no capital gain will be levied on it
Only agricultural land in urban area is a capital asset
Definition of Urban Land is
Area situated in some municipal Area
[Municipality/Cantonment Board etc.] of area having
Atleast 10000 population .
+
Any Nearby Area within specified km as mentioned below
Population of Municipal Area having population
No of Km from area
10000-100000
2 km from such area
100,000-10,00,000
6 km from such area
>1000000
8 km from such area
Note:-Area is to be measured aerially i.e. shortest possible distance to be taken
Pls check whether your area is not near any city as mentioned above
Learn more
http://www.teachoo.com/261/80/What-is-Capital-Asset/category/Basics/
Comment
Answer the question...
Hi Krishnan
Agricultural Land situated in Rural area is not a Capital Asset
Hence,no capital gain will be levied on it
Only agricultural land in urban area is a capital asset
Definition of Urban Land is
Area situated in some municipal Area
[Municipality/Cantonment Board etc.] of area having
Atleast 10000 population .
+
Any Nearby Area within specified km as mentioned below
|
Population of Municipal Area having population |
No of Km from area |
|
10000-100000 |
2 km from such area |
|
100,000-10,00,000 |
6 km from such area |
|
>1000000 |
8 km from such area |
Note:-Area is to be measured aerially i.e. shortest possible distance to be taken
Pls check whether your area is not near any city as mentioned above
Learn more
http://www.teachoo.com/261/80/What-is-Capital-Asset/category/Basics/
Comment