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Case related to agricultural land

shubham (article) (34 Points)

07 July 2016

Suppose someone has sold his rural agricultural land at Rs. 70 Lacs and receive cash of Rs. 20 Lacs as Bayana . and deposited into bank account. when sale deed is executed then sale deed is executed at Rs. 50 Lacs as most of the people do (register sale deed less than the actual consideration receive). Now what to do ? as income tax department add Rs. 20 Lacs u/s 69A(undisclosed income).

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2 Replies

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 07 July 2016

Hi Subham,

Agriculture land is out of pueview of capital assests as defined in sec2(14) of Income tax Act, hence the same shall be exempt income but you have to disclose the same in your ITR.

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prashantkumar (CA final) (96 Points)
Replied 07 July 2016

of course rs-20 lack is undisclosed (prove yourself if you had a evidance of it) you had the cousious about the income tax angle at the time of registering the property. purcheser to save the stamp duty will register the property at lessor value. now you will ask the purcheser to discoser of Rs-20 lacks in the sale deed else taxability us 69A arrised.