Disclosure of receipt of sale of agriculture land in itr

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Dhebek

Student CA IPC / IPCC

123 Points Posted on 01 October 2017

Respected CCI Members,

Kindly guide me for following issue.

My friend sold agriland during the financial year 2013-2014 and purchased another land by using the receipt of sale of agri land.after that, he did not file income tax return till now.So when i try to file income tax return for earlier and current assessment year, i noticed that, there is compliance in respect of AIR Transaction for sale of agri land,

My Doubt is as follows:-

Since agri land is NOT CAPITAL ASSET as per section. then how do i show the receipt in ITR? Is it right to classify receipt as exempt income?

Second, I need to give reply for compliance in efiling website. It gives only limited options[Like income out savings etc], What is optest reply for this compliance?

Thanks in Advance,

Yours Faithfully,

Dhebek

Replies (10)

Ashwin Kumar

1234 Points Posted on 01 October 2017

sale of agri land is taxable under LTCG or STCG as the case may be....sale of agree land is not exempted unless otherwise situated in urban area

Dhebek

Student CA IPC / IPCC

123 Points Posted on 01 October 2017

Thank you sir! It is situated in rural area only. that is in village,Receipt of such sale is utilised for purchase of another land. Kindly guide me about how to fill this particular in ITR

Thanks,

Dhebek

Ashwin Kumar

1234 Points Posted on 02 October 2017

where is the land situated rural area or urban area

Dhebek

Student CA IPC / IPCC

123 Points Posted on 02 October 2017

Rural area sir. it is in village.

Ashwin Kumar

1234 Points Posted on 02 October 2017

then no problem all you have to do is to show the sales under the head CG along with the sales receipt and also the purchase document of the new land in order to claim exemption. the new land can be purchased anywhere either in urban or rural area......suppose if you have not purchased , then you have to purchase within 2 years in order to claim exemption. moreover if you have sold and u are purchasing after 1 year then you have to pay Capital Gain tax and can claim refund of the same on purchase of new land provided it is within 2 years

Dhebek

Student CA IPC / IPCC

123 Points Posted on 02 October 2017

i Humbly extend my sincere thanks to guide me in this regard.

Dhebek

Ashwin Kumar

1234 Points Posted on 02 October 2017

you are welcome

Srikanth Yekkaldevi

179 Points Posted on 03 October 2017

* capital gains on sale of rural agriculture land is not taxable and there is no need to file return .

* what ashwin posted above is relating to claim exemption of capital gains on sale of urban agriculture land under sec54B , but your land is situated in rural area and which is exempted from tax .