ASSESSEE,90 YEARS OF AGE, SOLD THE RURAL AGRI LAND FOR RS 6000000/- PAYMENT RECEIVED CASH 3500000/-CHQ 2500000/- REGISTRY WAS RS 2500000/-. THE ASSESSEE DEPOSITED ENTIRE AMOUNT IN HIS SAVING A/C. NOW RECEIVED THE NOTICE FROM IT AND ASKING FOR SOURCE OF RS 3500000/- .THE ASSESSEE IS READY TO GIVE AFFIDAVIT THAT HE HAS RECEIVED THE PAYMENT AGAINST SALE OF AGRI LAND. CAN HE GET ANY RELEIF FROM DEPT ON THE BASIS OF THE AFFIDAVIT. IS THERE ANY CASE LAW IN THIS REGARD
18 May 2015
INCOME FM TRANSFER OF RURAL AG LAND IS NOT CHARGEABLE TO CG TAX U CAN GIVE THIS DETAIL IN REPLY IN CERTAIN CASES INCOME FM TRANSFER OF RURAL AG LAND IS TREATED AS AG INCOME WHICH IS EXEMPT FROM TAX CA MANOJ GUPTA JODHPUR 09828510543
20 May 2015
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.
In your case, affidavit will not works. You have to submit a written reply along with the details of Tax computation, Why the capital gain from sale of agricultural land exempted from the tax?, subsequent provisions along with definitions, any suitable case law, etc
You submit in the tappal section and wait for reply from AO
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