I held some agricultural land in Gujarat state for 14 years, and sold it on 20th August. As per the law in Gujarat, a non-farmer cannot hold agricultural land, so the land status was changed to non-agricultural status 3 months back for the purpose of sale.

Now will I be able to avail long term capital gains benefit or is it business income?

  • 1
    Country? Location is always needed to answer tax questions Aug 24 '14 at 10:34

Gains Agricultural land is non-taxable. However if the status of the land is changed, it would be Capital Gains, there is no business income here unless the land was bought on Companys name.

Please consult a CA, there would be benefit of indexation as well as arriving at the fair price.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.