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Tax treatment

Shivani (Learner) (1881 Points)

17 July 2018

X of Punjab sold his agricultural land for rs. 90 lakh in PY 17-18.

out of the sale proceeds he gave Rs. 10 lakh , 5 lakh and 5 lakh to his sons A, B and C respectively.

WHat will be the tax treament in hands of X, A, B and C?

regards

shivani

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (169790 Points)
Replied 17 July 2018

If Urban agricultural land sold....... capital gain tax liability will arise over Mr. X

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Shivani (Learner) (1881 Points)
Replied 17 July 2018

sir its rural agricultural land

while filing return of X and A

what shall i do

will rs. 10 lakh be considered as income of A or do i show it as his exempt income or does it not to be shown at all.

and if A deposited rs. 10 lakh in his bank account and X deposited rs. 90 lakh in his bank account from where he gave rs. 10 lakh to A,

then while filing return of X and A do we need to give such cash deposit details anywhere in ITR of X and A

regards

shivani

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (169790 Points)
Replied 17 July 2018

As per section 269SS, which is effective from June 2015, any transaction in real estate, including agricultural land, shall be required to be made through account payee cheque or real time gross settlement(RTGS) or electronic funds transfer if the amount is Rs 20,000/- or above. If transaction is done in cash then penalty of an amount equal to such cash transaction will be imposed on seller who accepts cash or refund of advance is made in cash by the seller of property.

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 19 July 2018

Originally posted by : Shivani
	X of Punjab sold his agricultural land for rs. 90 lakh in PY 17-18. out of the sale proceeds he gave Rs. 10 lakh , 5 lakh and 5 lakh to his sons A, B and C respectively. WHat will be the tax treament in hands of X, A, B and C? regards shivani