Capital gains tax treatment of rubber trees on agricultural land clarified as taxable capital asset transfer. Capital gains tax applies to profit arising from the transfer of a capital asset, and agricultural land is excluded from the definition of capital asset except in specified areas. Rubber trees standing on agricultural land are treated as distinct from the land itself and cannot be regarded as agricultural land. Profit from the transfer of such trees is chargeable under the head 'capital gains', with reference to Travancore Tea Estate v. C.I.T. as supporting authority.
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Capital gains tax treatment of rubber trees on agricultural land clarified as taxable capital asset transfer.
Capital gains tax applies to profit arising from the transfer of a capital asset, and agricultural land is excluded from the definition of capital asset except in specified areas. Rubber trees standing on agricultural land are treated as distinct from the land itself and cannot be regarded as agricultural land. Profit from the transfer of such trees is chargeable under the head "capital gains", with reference to Travancore Tea Estate v. C.I.T. as supporting authority.
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