Hi guys,
One difficult practical problem arouse today. A land was sold on March 2012 and the receipts were deposited in a bank in FD by one of my relatives. Today notice came from income tax that he must file return of income in 10days or else actions will be intiated.
The said land was acquired in 1950 by the said persons grandfather and was in possession of his mother when it was transfered and his mother is not a senior citizen. No return was filed on that date.
The problems that i noticed are
Its in a rural area and was used for agri purposes for some period of time. How to make sure if the said land is a rural land or not. The area of 8 kms aerially is to be considered or back then it was not aerially
How to compute the FMV as on 1.4.81
Can some amount be added up and shown as improvement costs even though no evidence is there in hand related to the said improvements.
Is there any chance of making the payments in installments if the said rural area thing wont work out
My relative is supposed to file a return within 10 days and the return is to be filed for the Assessment Year 13-14 right?
Please reply guys.. Its a real emergency!!!!
Thank you
CAclubindia
