Clarification regarding capital gain of sale of agricultural land in rural area

This query is : Resolved

BHANU PRAKASH (Querist)
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01 January 2024 Respecting Sir/Madam,

"Sale of Agricultural Land in Rural area is not a Capital Asset" so no capital gain tax is applicable.

But,
1) Whether Sale consideration is accepted in the mode of 'cash' ?
2) if, in case " mode of cash is acceptable", Whether he can Deposit the cash in Bank?
3) The client wants to sell his 5 acres of agricultural land in rural area @ Rs.15,00,000. but stamp duty value is Rs.10,00,000.

Whether he can Deposited in Total amount of Rs. 75,00,000. in his bank account or he can only Rs.50,00,000. and also is there any tax complications.

4) Whether he can Receive Total amount of Rs.75 Lakhs in a mode other than cash WIthout any tax impacts.

Please give me proper advise.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 January 2024 1 No, as sale consideration exceed Rs 20,000.
2 Mode of cash not acceptable.
3 50 lacs can be accepted through bank.
4 In case of total amount of 75 lacs received through bank.
Tax applicable on 25 lacs treating it as gift from non related.