How many types of agricultural land can be divided, it can be divided into two types. Rural agricultural land and Urban Agricultural land.
We do not have to pay any tax on Rural agricultural land, whereas we have to pay tax on selling urban agricultural land.
Urban Agriculture Land is the land which comes within the limits of Municipality President Cantonment Board and whose population is more than 10,000. We have to pay income tax on the sale of land falling within the limits of Municipality and Cantonment Board.
If we are going to sell any land beyond the limits of Municipality and Cantonment Board but within 2 km, we have to see that if its population is more than 10,000 and if it is less than one lakh then we will call such land as Urban Agriculture Land.
Any land which is within a range of 6 kms from the limits of Municipality and Cantonment Board and its population is more than one lakh and less than 10,00,000 then also have to pay tax on selling. At the same time, if any such land is called within a range of up to 8 kilometers beyond the limits of the Municipality Cantonment Board and its population is more than 10 lakhs, then such land will also have to pay income tax on selling our land.
Check the PDF of Income Tax Department : Income tax India
Let us know that if we sell any such land which comes under Urban Agricultural land then how much tax will we have to pay.
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Save tax in 2024
We can appeal to save our tax on short term capital gain, long term capital gain.
SECTION 54B under which who can save tax on long term capital gain or short term capital gain. If we buy any new agricultural land after selling any agricultural land within 2 years of sale, our capital gain becomes exempt.
Apart from this, other exemptions have also been given in income tax SECTION 54EC This is applicable only in case of long term capital gain. Even if we invest the capital gain arising from the sale of agricultural land under certain bonds, our long term capital gain becomes exempt. Bonds are National Highway Authority of India and rural electrification Corporation limited.
SECTION 54F, by which we can save our long term capital gain The new property that you have bought will have to be taxed for 3 years. If you do not keep or sell, then you will be taxed again which was forgiven to you. And here you have to keep capital gains by putting money in your capital gain account scheme itself otherwise you will not get tax exemption. You have to buy residential property only to save or waive this tax. But you can buy a house, but if you buy a plot, then your tax on it is not waived. You can also buy the house and or you can also build There will be time limit before 1 year when you sell your property or after 2 years you can get tax exemption and if you are doing construction then you can take up to 3 years. Suppose, your construction is completed after 4 years, then you will not get an exception.