Taxation

Well all of us are quite excited about how we can make a planning out of tax provisions so as to reduce our tax liability
So let's have a look how it worked out in the past and how the department checked it

Let us start:
1.Tax on Sale or transfer of Personal Effects not liable to any kind of tax
Rationale:Personal effects are not capital assets and personal effects when usually sold are sold at lower than buy price
Tax Planning:Any amount on sale of Car,Furniture I.e Personal Effects are not liable to tax.

2.Agricultural Land:
In India,majority of population lives in villages and most of the villagers are Agriculturist. Most of them are not able to make a good living out of this.So,Agricultural land is specifically excluded from the definition of Capital Asset and any gains arising from Transfer of Capital Asseet is not liable to any kind of tax.Any income arising from sale/transfer of agricultural land is not chargeable to tax