{"id":3285,"date":"2020-01-04T14:59:19","date_gmt":"2020-01-04T09:29:19","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=3285"},"modified":"2020-01-09T16:44:32","modified_gmt":"2020-01-09T11:14:32","slug":"capital-gain-tax-on-the-sale-of-land-and-building","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/capital-gain-tax-on-the-sale-of-land-and-building\/","title":{"rendered":"Treatment of Capital Gain Tax on The Sale of Land And Building"},"content":{"rendered":"

When you sell the property, you have to pay the tax on the profit amount. This statement looks so simple but it is not. The reason is, complicated provisions made in the income tax act, 1961 in this regard. However, in this article, I will try to explain to you the whole tax process in a simple manner.\u00a0<\/span><\/p>\n

\"Capital<\/p>\n

When you sold the property, you may have so many questions like the tax also levied on agriculture land or how can I save the tax or whether I can get the deduction under chapter VI-A. I will also tell you how you can save the taxes on the gain from the sale of land or building. So, let\u2019s begin<\/span><\/p>\n

Capital Assets (Section 2(14) of Income-tax act, 1961)<\/b><\/h3>\n

As per this section, a capital asset means the property of any kind held by the assessee whether or not connected with his business or profession.<\/span><\/p>\n

Although this definition includes other points also, here I\u2019m explaining the provision of capital assets restricted to land and building.<\/span><\/p>\n

There are also some exclusions that have been made to this definition which includes the rural agriculture land. So if you sold any rural agriculture land then such a sale shall not attract any capital gain tax because such land is not a capital asset. So the question arises when you called a land as rural agriculture land.<\/span><\/p>\n

Rural Agriculture land means the agriculture land situated in India and the following agriculture land situated in India shall not be treated as rural agriculture land and shall be a capital asset.<\/span><\/p>\n