Jaitley Budget: Sweet News to Amaravati Farmers

The Union Budget 2017-18 tabled by Finance Minister Arun Jaitley had a really big news for the farmers who gave their lands to Amaravati under the Land Pooling Scheme. Arun Jaitley announced that Capital gains tax to be exempted, for persons holding land from which land was pooled for the creation of state capital of Andhra Pradesh.

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This is applicable only to those holding lands by the time of the State formation on June 2nd, 2014 and only if they participated in the state government’s Land Pooling Scheme. Andhra Pradesh Chief Minister Chandrababu Naidu is pressing for this for a long time and finally managed to convince the Center to do that.

Capital Gains Tax is the Tax on Capital gains, the profits realized on the sale of an asset that was purchased at a cost amount that was lower than the amount realized on the sale. Until now, the farmers in Amaravati are subjected to huge taxes as their land prices have surged after the Real Boom.

This will be a huge political benefit to NDA government particularly in the Capital region of Andhra Pradesh. This is the only big announcement which is Andhra Pradesh specific in the just laid Budget. It is also the only big announcement to Amaravati from the center after it was declared as the Capital for the truncated state.