05 December 2015
I am not going into the details of method computation you adopted to arrive rural agricultural land, hoping the method was in line with section 2(14) of the Income Tax Act, 1961.
Though sale of rural agricultural land is not an income at all, better to disclose the total amount as per the document (sale deed) under the Details of exempted Income (EI schedule) of ITR.
Please Note: Sale of rural agricultural land is not an income at all, so the question of exemption does not arise.
05 December 2015
please specify mode of receipt of consideration i.e. cash / through bank and also particulars of amount specified on the sale deed (not on agreement, hoping agreement was unregistered).
If the sale consideration was received in cash and the same was deposited in any bank account to the tune of Rs. 88 lakhs and only Rs. 70 lakhs specified in the sale deed, the difference amount of Rs. 18 lakhs to be considered as other income.
Any undisclosed income is subject tax @ 30% now without any exemptions / basic exemption limits/ deductions etc.
06 December 2015
Then the document (sale deed) should be written as Rs. 88 lakhs only both consideration and market value. It is essential for both vendor and vendee.
CAclubindia
