Wondering how much tax you will have to pay if you sell agricultural land purchased 40 years ago? Since the land is no longer being used for agricultural purposes, the registered sale deed serves as the primary document for the transfer of ownership and is the basis on which long-term capital gains tax (LTCG) is payable.
There is no purchase deed for agricultural land purchased 40 years ago. It is no longer agricultural land. How can its ownership be established and how will the tax be determined if it is sold in 2026?
Income tax free country, yet a developed economy! How?
Even if there is no original sale deed for the agricultural land purchased 40 years ago, the ownership of that land can be established through revenue records. The registered sale deed is the primary legal document for the transfer of ownership. But the information contained in long-term possession and revenue records (which are maintained by the revenue department) often serves as proof of ownership.
The main way to prove your ownership without original documents is to provide documents that show that your name (or the name of your predecessor) has been included in the government revenue records continuously for decades. These records are considered reliable evidence for agricultural land that has been owned for a long time.
The title deed, known as Jamabandi, is updated every few years. It contains details of ownership, cultivation and occupation, which can also help you. If your name has been there as the owner/beneficiary since the time of purchase (through mutation entry), it will strongly support your claim. Long-term occupation helps in proving ownership. Other documents, such as old revenue (lagan) receipts, electricity bills for tubewell connection, etc., can also help in proving your ownership.
Since it is no longer agricultural land, you will have to pay long-term capital gains tax on the capital gains. If the property was acquired before 1 April 2001, you can take the fair market value on that date as your purchase price. For this, you will need to collect a valuation report on that date. If possible, you can also determine the stamp duty rate on the land.
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