Applicability of capital gain tax on sale of inherited landed properties.

For rural agricultural land, the sale is typically exempt from capital gains tax. However, if urban agricultural land is sold, the seller must pay capital gains tax based on the period of ownership and the type of land. 

You can confirm the nature of the property sold to sacertain the details.

Respected Sir 

Originally the property was mentioned as Nanjai land in 1998 sale Deed.But in the last sale Deed the seller  is the widow and only legal heir of the owner of the property .

She got patta  of the land in her name before selling the land.It was sold to 3 different buyers as house plots (Veetadi Manai).at 31,31,13 lakhs each .The total extent was 25 cents.The property is now in Madurai corporation limit.

Now enlighten me the applicability ofLTCG and rate of tax also.

Thanking you

Balakrishnan K S 

Consult tax lawyer. 

The property appears to be located in the urban area and as no conversion of land to residential had been obtained, it will remain as agricultural land. However an urban agricultural land is considered a capital asset, and profits from selling such lands would be treated as capital gains and attract tax.

Section 54F exempts you from paying LTCG tax on the sale of long-term capital assets other than a house if you utilise the sale proceeds to buy/construct a new house. The new house should be purchased either one year before or within two years of the sale of the long-term asset.

Respected Sir 

Thanks for your clarification as above. Still my understanding on further clarity about applicable  tax rate is required.