Selling agricultural land and sending money to NRI

Thanks hope this forum should be a great use.
Please help me with following questions:
Am planning to sell agricultural land in india worth of 2 crore and send to my son who is an NRI.I know that i can send through Property inheritance of sale deed to my son.The market value of the land is 2 crore and the govt.value is 75 lakhs.My questions
1.If i sell the land for market value (2crore) how can i send the money for the govt value of 75 lakhs.
2.what are my tax worries here?
What % of tax leived for sale of agri.land?
3.What are the other modes of outward remittance which eases riskless tranactions?
Pleas help me members

you want riskless tranctions? than i rply after 5 days

By keeping 1.25 cr. with yourself.

As it's Agricultural Land, there won't be any Capital gain Taxation in India. However, your son may have to pay tax on the gift received from you depending upon the rules applicable in his tax jurisdiction.

NIL.

Transfer through the banking channel to avoid any kind of risk.

I am sorry sir. Agricultural Income is tax free but not capital gains on sale of Agricultural Land. It is taxable @ 20% if it is long term asset.(assets held for aperiod of more than Three years.) If the land is held for a period of less than three years normal tax rates are applicable.

Sir,

you have to clarify lot of things.

1) In whose name the property is.
2) what will be the registration value.
3) assuming that it is 75 lakhs, how are you going to receive the balance
amount?

based on the answersyou give,there will be some more questions, which you have to answer.

what I suggest is you consult some professional personally and get proper tax planing advice.

That long term capital gains tax is 20% + cess etc.,

So far as my knowledge goes, Agricultural land is not a capital asset (Section 2(14)(iii) of the Income Tax Act, 1961) and hence there is no question of capital gain on sale of agricultural land. Of Course, the definition of Agricultural Land as per the IT act should be used for the purpose.

1.If the agricultural land is situated more than 8 kilometers from the limits of a municipality then the entire profit you make is tax free.But real estate transactions are rarely entirely white and you will get a substantial amount in black.

2.If it is within those limits then capital gains tax arises.The rate of Capital gains tax is 20% on the profit.(it is assumed that you had held the land for more than 3 years so that it is long term capital gains).You can save this tax if you invest the profit again in agricultural land or capital gains bond within 2 years of sale.

3.Now since you are going to receive 75 lakhs as white and other 125 lakhs as black(since it is rare in india when a buyer will declare the entire amount and not save stamp duty),you can legally only send 75 lakhs (after paying capital gains tax ,if applied) Riskfree way will be through normal banking channels.It will be perfectly white for your son and he may or may not have to pay gift tax depending on the tax laws of his residence.

4.Rest of the black money is yours to do whatever you like to do without letting the taxman know.If you want to send this to your son you can send it through Hawala.

Please help me with following questions:
Am planning to sell agricultural land in india worth of 2 crore and send to my son who is an NRI.I know that i can send through Property inheritance of sale deed to my son.The market value of the land is 2 crore and the govt.value is 75 lakhs.My questions
1.If i sell the land for market value (2crore) how can i send the money for the govt value of 75 lakhs.
2.what are my tax worries here?
What % of tax leived for sale of agri.land?
3.What are the other modes of outward remittance which eases riskless tranactions?
Pleas help me members

Transfer through Hawala ....

Wow... 2Cr . wish my dad was also a farmer...

Hi,

I have a 5 Bigha Land at Jail Road, Lucknow with 100 ft front. The road is getting into 4 lane road. Its adjacent to the Vyaapar Mandi and the upcomin international stadium. the asking rate is Rs. 65 lakhs per Bigha.

If anyone intrested please mail me at [email protected]