Sale of rural agricultural land

[Guest]

Is sale of rural agricultural land exempt.... Under which section????

[CAGOPALJI AGRAWAL]

Agri. Land is not capital asset. Pl. refer section 2(14)(iii).

[YAGAY andSUN]

very true.

AI Summary

Agricultural land classification affects capital asset status, altering its treatment for income tax on sale. Sale of rural agricultural land raises whether such land is subject to capital gains taxation; the commentary states that agricultural land is not a capital asset and cites the statutory definition excluding agricultural land from the capital asset concept for income tax classification.