Tax on agricultural land sale
Guest
(Querist) 07 September 2011
This query is : Resolved
Some small pieces of land sold in the hilly area which falls within 8K.M.of municipal limits,and can only used for agricultural purpose!
1.What will be the percentage of advance tax?
2.How much Total Tax has to be paid?
Thanks !
Shailesh Kr. Shah
(Expert) 07 September 2011
There is no income tax on agricultural land, if there is no other income from other sources.
Raj Kumar Makkad
(Expert) 07 September 2011
No income tax is to be paid advance or final.
prabhakar singh
(Expert) 07 September 2011
both of experts opining here before are right.
Shailesh Kr. Shah
(Expert) 07 September 2011
Sale of agriculture land is taxable only if it is located within 8 kilometers from the urban limits.
prabhakar singh
(Expert) 08 September 2011
Since Mr. Shah getting confused on his own, whose opinion was endorsed by me i,now prefer to post my own understanding about taxation on agricultural income.
1)If one has only agricultural income,it is tax free.
2)If one has Income from agriculture and also from one or more other sources,such as salary,business,rents,etc.for deciding the slab of taxation ones' income of all sources including the agricultural is clubbed together but there after agricultural income is deducted and tax @of enhanced slab is paid on the income excluding the agricultural income amount.
##sale of property is not the matter of income tax,because on sale of property tax charged is called CAPITAL GAINS TAX.
@@ The query relates to SALE of agricultural land HENCE HERE CAPITAL GAINS TAX,PAYABLE ,IF ANY ,IS ATTRACTED.
ONCE SOLD THE WHOLE OF CAPITAL GAINS TAX HAS TO BE PAID UNDER HEAD OF CAPITAL GAINS SO MATTER OF ADVANCE TAX DEPOSIT I THINK DOES NOT ARISE.
IT IS CLEAR TO EVEN QUESTIONER THAT AS LAND IS WITHIN 8 KM RANGE ,IT IS ATTRACTING TAX,BUT SUCH TAX HAS TO BE CALCULATED HAVING REGARD TO COST OF INDEX FOR WHICH
ONE NEEDS TO GO THROUGH TABLE PROVIDED FOR PURPOSE AND CALCULATE ACCORDINGLY.
THIS ALL IS NOT POSSIBLE FOR WANT OF COMPLETE DETAILS REQUIRED HENCE QUESTIONER IS ADVISED TO VISIT A TAX LAYER PERSONALLY.
