Gain on sale of agricultural land in rural area

This query is : Resolved

PARESH TIKADIYA (Querist)
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01 February 2014 Sir,

I want to know about the following:

My one client has non-agricultural income is Rs. 495000 and Rs. 350000/- income from sale of agricultural land in rural area
Sir, I knew that gain on sale of agricultural land in rural area is exempt. But I want to know that whether this income will be added with non-agricultural income for rate purposes. Is this income will be treated as agricultural income? If not then this exempt income should be shown in which head of income in ITR 4. Please reply immediately.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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01 February 2014 You are saying Gain on agricultural land by it sale, Since the gain/profit earned due to the sale it is capital gain not Income from Agricultural so it is not added to non agricultural income for tax rate purpose.

And gain on sale of agricultural land shall be disclose in ITR-4 by filling Schedule Capital gain/loss and has to claim exemption at the appropriate column and section provided in Schedule CG.

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