In 1998 rural agriculture land received by a person after death of his parents. agriculture was done on it but person sale his land in year 2009-10 at rs 13lac.
1-how to calculate initial value of land?
2-if there is profit what is tax treatment?
3-sale of land was done by bank transaction.. is there any need of showing in the scheme of undisclosed money and pay tax now... If yes then do explain please
Rural Agricultural Land is not a capital asset unless it comes under specified category. Hence income from Rural Agricultural Land is not taxable as per Section 10(1).
1. Initial value would be cost of acquisition of his parents.
2. No Capital Gain will arise on sale of Rural Agricultural Land.
3. Agricultural Income is to be considered for Rate purpose i.e Partial Integration of Taxes, if such income exceeds INR 5000/-
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