capital gain, Income Tax

[ajay sajwan]

namaskar,

an agrivultural land is sold by dividing it into three parts and as a result three registered deeds were made..is this liable to capital gain.?

Posts / Replies

[SANJAY DAVE]

If this land is an agriculture land within meaning of section 2 (14)(iii) of the IT Act, 1961, and continues to remain so even after division in to 3 parts, then there will be no capital gains tax since it will not fall under definition of term Capital Asset u/s 2 (14) of the Act. U/s 45 CG are chargeable on transfer of a Capital Asset only.

[kiran kumar]

where the agricultural land is situated ? is it rural agri land or urban agri land? if rural agri land no capital gain will attract.