Sale of agricultural land may be liable to capital gains tax
Sale of agricultural land may be liable to capital gains tax
0 Comments | DNA : Daily News & Analysis; Mumbai, Apr 24, 2010 | by Shanbhag, Sandeep
My father is an NRI senior citizen of 83 years and also holds registration as Overseas Citizen of India. He recently sold some Indian agricultural land given to him by his father. What would be his tax implications? Can he purchase with the same sale amount, any other Indian housing or agricultural property in his name or in the name of his wife who is an Indian national or in the names of his NRI children? If yes, what are the limits? Can he, being OCI operate resident bank account in India, if he spends 182 days or more in India during a financial year?- Anil Kumar
Any agricultural land would be treated as a capital asset if it is situated 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 10,000 according to the last preceding census of which the relevant figures have been published before the first day of the previous year. Further, the scope for this purpose is extended to lands situated within 8 km from the local limits of these municipalities or cantonment boards and the Central Government has notified such extended areas.
Consequently, sales made of such agricultural lands would attract tax as capital gains
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