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Lancy Peris   10 February 2024

Ancestral property

I have a piece of land in Mangalore ad-measuring 1.25 acres. This is an agricultural land which is being sold after converting to non-agricultural land.

What are the tax repercussions for me in this regards. Will I have to pay income tax on the proceeds received from the ale of this land.

Please advise.



Quick Summary
This discussion explores the tax implications of selling ancestral agricultural land in Mangalore after converting it to non-agricultural use. It clarifies that long-term capital gains tax applies to the sale of non-agricultural property, with the tax amount depending on how long the land was held. The query also addresses whether capital gains tax is applicable even if the property was inherited without a purchase cost.

 2 Replies

T. Kalaiselvan, Advocate (Advocate)     10 February 2024

The applicable long term capital gains tax has to be paid on sale of non agricultural property. 

The quantum of tax will depend on the commutation of the period of holding the property before selling it. 

Lancy Peris   21 February 2024

Does Capital Gains tax apply even to Property received from our grandfather without any purchase value paid. 


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