| Question And Answer | |
|---|---|
| Subject: | Agriculture land selling and purchase transaction capital gain tax applicable |
| Category: | Income-Tax |
| Querist: | Kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | Capital Gains, Rural agricultural land |
| Date: | March 19, 2025 |
It person purchase of agriculture land rs:15 lacs year 2023 and selling of agriculture land rs:18 lacs to Name Mr.A dt:10-12-24 after another date dt:20-01-25 same agriculture land same per name Mr.A purchase of agriculture land rs:19 lacs
Question:
Assessess above transaction purchase and sales capital gain tax applicable for it act
If the agricultural land is rural, no capital gains tax applies to any of the transactions, as rural agricultural land is not a capital asset under Section 2(14). The profit of ₹3 lakhs from the sale on 10/12/2024 is exempt.
If the agricultural land is urban, capital gains tax applies to the sale on 10/12/2024. The STCG of ₹3 lakhs (₹18 lakhs – ₹15 lakhs) is taxable at the assessee’s slab rate for AY 2025-26. The repurchase on 20/01/2025 has no tax implication as of 19/03/2025, as no subsequent sale has occurred.