Hey. Selling agricultural land is taxable if it lies in an urban area. However, no tax is charged if the land lies in a rural region. However, there are some conditions attached to these processes. So, if you want to know whether is selling of agricultural land taxable, you must read below.
Is Sale of Agricultural Land Taxable?
The answer to this question varies based on your personal circumstances. Let me talk about this in detail.
If you own agricultural land in the rural region, you won’t have to pay any sort of tax when you sell it. This is because agricultural land in a rural area is not categorised as a capital asset. Hence, you need not pay income tax for it.
On the contrary, if you wish to sell agricultural land, which is located in an urban area, you will be liable to pay income tax as it is not considered a capital asset.
Now, if the holding period of your land is less than three years, the capital gains are termed as short-term. In case the holding period stretches beyond the three-year mark, the capital gains are categorised as long-term.
You should be aware that short term gains come with no tax exemption,s and you will have to pay the applicable tax amount. The long-term capital gain is taxed at a rate of 20%. However, you can gain a tax exemption under section 54 F of the IT Act for a long-term capital gain for anything except a house property.
So, I believe you must have gained clarity regarding whether is there any tax on selling agricultural land or not. Have a nice day!
Effortlessly pay your bills through NoBroker’s utility app!
You must check: How to Pay Land Tax Online in West Bengal?Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Authors Of The Question
Is Selling of Agricultural Land Taxable?
balvant
38Views
11 months
2023-11-13T19:14:52+00:00 2023-11-13T19:14:53+00:00Comment
1 Answers
Share