Capital gains on sale of agricultural land

This query is : Resolved

Swaraj Sheth (Querist)
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12 December 2013 My grandpa wishes to sell his Agricultural land also with a house which built next to the respective land. His age is more than 60 but less than 80. His Income tax files have been closed 3 yrs ago i.e he doesn't file his return now. The land is going to be sold at 18Lacs with payment of two installment in chq. of equal amounts. My grandpa doesn't wish to reopen his File. Does he attract any tax liability even if he doesn't file a return? Are there any chances of Income Tax Notice for the same, i.e the return is not filed and bank shows a chq. amount received of Rs.18Lacs????

Nikhil Kaushik online

Nikhil Kaushik online

(Expert)
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13 December 2013 if it is an agriculture land, no capital gains. So you can avoid filing return. however, you need to ensure that the land satisfy the definition of agriculture land as per income tax act.

Also, there is no concept of income-tax files being closed or opened. it depends on year to year basis. if the income is taxable, you shall be liable to file returns.