Agricultural land treatment
Richa ( ) (377 Points)
21 November 2016Richa ( ) (377 Points)
21 November 2016
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177858 Points)
Replied 22 November 2016
If its rural agricultural land no tax liability arises; but if within some specified area, capital gains arises. So, check the tax treatment of original compensation and follow the same.
File ITR of the farmer for the corresponding year and claim refund of any excess TDS.
Richa
( )
(377 Points)
Replied 22 November 2016
Yeah sir, it is rural agricultural land. can u please guide me the relevant section?
Regards
Richa
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177858 Points)
Replied 22 November 2016
Rural Agriculture land is not considered as capital asset as per section 2(14) of the Income Tax Act.