| Question And Answer | |
|---|---|
| Subject: | Applicability of Section 45(5A) on rural agricultural land transferred under JDA |
| Category: | Income-Tax |
| Querist: | Pratheek M Bhat |
| Answered by: | Reply of the Expert is awaited; |
| Tags: | Agricultural land, Joint Development Agreement |
| Date: | October 22, 2024 |
Whether the provision of section 45(5A) of Income Tax Act, 1961 is applicable on transfer of rural agricultural land under Joint Development Agreement (JDA)?
The rural agricultural land is not a capital asset as per section 2(14) of the Act, hence, in my opinion the provision of section 45(5A) should not be applicable on transfer of rural agricultural land under JDA. Accordingly, any capital gain from transfer of such land under JDA should be exempt.
Reply of the Expert is awaited. Please check back later
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