Sale of Agricultural land, Income Tax

[deepak gulati]

If on sells Agricultual land ( not a capital asset being situated beyond 8km from municpility and population less than 10000 ), but sale deed is prepared as Industrial land ( to save stamp duty on purchase of land for industry as per state policy). Whether sale of land will be exempt or not ?

Posts / Replies

[Amit Sharma]

Industry can be established at any area i.e. may be rural area or urban area. Further you have sold agriculture land which is not a captial assets for the purpose of capital gain. Generally registry done by purchasing party not by selling party. If documents or khatedari of land shows that it is a agriculture  land which situated at rural area ( as specified in Income Tax Act) then you can claim exemption.