Union Budget 2017 Exempts AP From Capital Gain Tax

Andhra Pradesh Chief Minister N Chandrababu Naidu today thanked the Union government for conceding the State's demand to exempt the people who gave their properties for the construction of Andhra Pradesh's new capital Amaravathi, from the Capital Gain Tax.

Earlier on February 1, in his speech during the Budget session, Union Finance Minister Arun Jaitley had noted that the new Andhra Pradesh capital was being constructed by innovative land-pooling mechanism that didn't require the Land Acquisition Act, 2013. He said that persons holding the acquired lands since June 2, 2014, the date on which Andhra Pradesh was reorganised, and whose land was being pooled for creation of the capital city under the government scheme, would be exempted from Capital Gain Tax.

Responding to this, the Chief Minister thanked the Centre and Arun Jaitley. Capital gains tax exemption was expected to benefit the farmers to the tune of around Rs. 10 lakhs to Rs. 30 lakhs, depending on the value of their plots, Naidu said.

24,000 farmers voluntarily came forward to give 35,000 acres land, which was worth Rs. 40,000 crores, under the Land Pooling Scheme (LPS), for the upcoming State capital, he claimed. And the authorities had almost completed the process of handing over developed residential and commercial plots to farmers in return for their lands.

For every acre of irrigated land, the farmers had been given a 1,000 sq-yard residential plot and a 450 sq-yard commercial plot, the CM claimed.