Capital gains tax relief for land pooling farmers in Amaravati.

Posted by Avenue.in on February 1, 2017
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amaravati land poolig farmers capital gains tax exemption
Amaravati: Farmers in Andhra Pradesh who surrendered their land to the government for its upcoming capital city Amaravati will not have to pay capital gains tax on the land sale proceeds.

Those who held land on 2 June, 2014—when Andhra Pradesh was bifurcated to carve out Telangana, India’s youngest state—and sold it to the government will benefit from the tax waiver, finance minister Arun Jaitley said in his budget speech.

Over 20,000 farmers have given up land under the Land Pooling Scheme (LPS) for the development of the new capital city.

Capital gains tax to be exempted, for persons holding land from which land was pooled for creation of state capital of Andhra Pradesh, Jaitley said. The tax benefit depends on the value of the land given up by the farmer.

At the recently concluded Andhra Pradesh-Confederation of Indian Industry (CII) partnership summit, the state had received 665 proposals amounting to over Rs10.5 trillion which included big-ticket investment announcements by the Centre.

Andhra Pradesh chief minister N.Chandrababu Naidu assured investors last Saturday of clearing files within 14 days. He added that the state had a land bank of 35,000 acres that gave investors ample room for setting up new facilities.

The investment commitments included 14 memoranda of understanding signed by AP Infrastructure and Township Development Corporation amounting to Rs 40,660 crore, 62 by AP Capital Region & Development Authority valued at Rs 1.24 trillion, 66 MoUs by the Economic Development Board worth Rs 362662 crore.

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