Agriculture land in rural area is not asset no capital gain shall be applicable on same.
I bought an acre of agricultural land in the outskirts of Delhi, had been doing farming in that and sold it after six years.I had a Capital again of 2.2 of which I again bought agricultural land in a rural village of Haryana which is 15 KM from the nearest town. Now after two years of this purchase I want to sell this land and use the money for my husband’s cancer treatment. Can I do so and will I attract Capital Gains and pay tax on that ? Thanks.
the entire tax exemption will be reversed if the new property is sold within three years of purchase
If you sell a property within 36 months of buying it, the profit is added to your income for that year, and taxed as per your income tax slab rate.
You have to pay capital tax as per ready recknor Index calculator, so need to know date of purchase and price and selling date and price. So will be able to provide you exact captain gain tax or straight forward you can reinvest in real estate or in bonds.
spending the capital gains in the treatment of your husband will not give you the benefit of exemption from levy of capital gains tax
the capital gains are required to be invested only in specified assets as mentioned in the relevant section of the IT Act
however the money that you may have to spend for your husband's treatment can be claimed as a deduction from either your income or his income
To save capital gains I bought this land in rural area. Now planning to sell it after two years and want to use the money. Do I get agricultural land in rural area benefits and don’t need to pay taxes. Secondly if I transfer this in my married daughter name and she sells and we use the money. Do we still have to pay tax.
Yes there won't be any capital gain.
See there is no tax liability on sale of agricultural land you don't neet to transfer and then sell.
However, agricultural land in a rural area in India is not considered a Capital Asset. So, no capital gains are applicable on its sale.
2)once gift deed is executed duly stamped and registered she would be absolute owner of property she can sell the property
Dear Clietn,
An asset held for a period of 36 months or less is a short-term capital asset. No exemption.
Agricultural land in rural India dose not comes under the category of capital asset:
You need to pay taxes whatever is applicable to you. Even if you transfer that to daughter she has to pay applicable taxes as per her income returns
Generally, agricultural land is not considered a capital asset and, therefore, its sale does not attract capital gains tax.
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.
Since your lad was situated 15 kms away from town, it can be classified as rural area hence there is no capital gains on it and you are exempted from it.
you can proceed.
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.