Ay 2011-12

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2016 Dear Sir,
One of my friend has received notice, stating that he has received fd interest of Rs. 55780/- in AY 2011-12 and tell about the source of FD. In fact, his father sold out his agriculture land in 2008 and after the death of his father he purchased fd from this money. Apart from fd interest he has no other source of income.

Please give me some valuable advise to tackle the matter?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

09 January 2016 The most valuable advise for your friend is to start working as the amount saved by his father will also wiped out if he is not having any other source of income.
.
How the family is being maintained if he is not having any other income and agriculture land ?
.
Is he is having- Sale Deed of Agriculture Land - decide its nature as Rural/ Urban, mode and amount of sales consideration etc.
.
Make a suitable and reasonable explanation which should cover the points raised in the notice.
.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
Follow

09 January 2016 Analyze, whether agricultural sold was rural or urban. In case it is rural agricultural land, amount received against sale its is totally exempt (as the agricultural land is not a capital asset at all) from Income Tax. You can spend / invest / donate / lend etc. such money without any restriction.

Refer notification No. 9447 dated 06-01-1995 issued by CG, to decide the nature of the land.
http://www.dtbaludhiana.com/files/docs/notifcation%209447.pdf

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2016 Whether the this notification is still effective or it has been over ruled by any new notification?

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
Follow

09 January 2016 For AY2011-12 Notification 9447 is applicable. Now, the capital asset definition u/s 2(14)(iii)(b) has been revised wef FY2013-14.

Message likes : 1 times