Sale of agriculture land
Prabodh
(Querist) 04 March 2012
This query is : Resolved
I want to sell 4 acer agriculture land in Faridabad inherited since last 15 years from my father,since then cultivated by myself
I want to know the followings:
1.from where I can get the certificate to cnfirm that the land sold by me is agriculture land.
2. Do i have to inform Tax department before selling the land.
3.If I sell land as agriculture land tothe party, and after possesion if he do not cultivate am i responsible ,and is it going to effect me on income tax front for capital gain exemption.
A V Vishal
(Expert) 04 March 2012
If the lands are located outside a distance of 8 kms from the municipal limits in all directions then it can be treated as agricultural land. However, there are few other conditions like the population of the area must not be more than 10K and the land must be cultivated 2 years prior to sale.
1.from where I can get the certificate to cnfirm that the land sold by me is agriculture land.
Ans.The local revenue authority like tahsildar, MRO can certify the nature of the land.
2. Do i have to inform Tax department before selling the land.
Ans. Not required
3.If I sell land as agriculture land tothe party, and after possesion if he do not cultivate am i responsible ,and is it going to effect me on income tax front for capital gain exemption.
Ans. No you are not liable for the acts of the purchaser and it is not going to affect you in any way.
Nadeem Qureshi
(Expert) 05 March 2012
Dear Querist
I agree with Mr. Vishal
C. P. CHUGH
(Expert) 05 March 2012
Please be precise about the location of land as Faridabad has been a notified area since long, it is possible the land may fall within the category of urban agriculture which is subject to Capital gains Tax on Transfer.
2. Copy of Fard,showing details of cultivation and name of owner, obtained from Patwari of the area would serve the purpose to confirm that the land in question was under cutltivation at a given time.
3.There is no pre-requirement of informing income-tax department or obtaining income tax clearance certifiate for sale of any property.
4. Once you have sold the land, you have absolved yourself from all future liabilities and it would be open to the buyer of land either to cultivate or get a CLU from appropriate authority and change the Land use. You would, however, be not responsible for the treatment of land once yoy have transfered ownership and have handed over the possession to the prospective buyers.
prabhakar singh
(Expert) 12 March 2012
Mr. Vishal & Mr.C.P.CHUGH have well guided you.
