capital gain

[Guest]

Dear sir,
I have a question about capital gain.Suppose Mr.A get some agricultural land from his father mr.B . mr.B also got those lands from his father.I mean these lands are all family asset.Now Mr.B is no more.Mr.A sell those land,now how to calculate capital gain from this type of selling,where no purchase value is avaiable.These lands are far away from urban area(mean more than 8 k.m).

[CAGOPALJI AGRAWAL]

If it is an agricultural land satisfying the conditions for ag. land, then no income would be taxable from transfer of such land.

AI Summary

Agricultural land exemption: transfer of qualifying agricultural land is not subject to capital gains tax. If the land qualifies as agricultural land under the applicable tax provisions, the transfer does not give rise to a taxable capital gain; therefore, where the land meets the statutory conditions for agricultural land, no income will be taxable on its sale.