Sale of Agricultural land

[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 ?

[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.

AI Summary

Agricultural land exemption preserved where records show rural agricultural status despite deed titled as industrial to save stamp duty. Exemption from tax on sale of agricultural land depends on the substantive record of the land: if title documents or khatedari show the land qualifies as agricultural rural land under the Income Tax framework, the agricultural exemption can be claimed even if the sale deed is executed as industrial land; registry is typically undertaken by the purchaser and the deed's label alone does not determine tax character.