24 July 2011
Rural agricultural land is not a capital asset as per section 2(14)(iii) the Income tax Act,1961. Therefore, its transfer by any modes specificed in sevtion 2(47)of the said act need not be considerd for the purpose of income tax computation. Further section 194LA also stipulates that TDS provisions also does not attract on compulsory acquisition of rural agricultural land. In view of the above provisions, if the farmer does not have any other income which is in excess of the maximum amount which is not chargeable to tax, no need to file IT return.
07 August 2011
Thanks sir, But one case in my hand as follows: 1)Land Rural agriculture land 2)Acquired for highway Project by Goverment 3)TDS by govt on rs.394000/- at10.30% amounted rs. 39440/- 4)I file return as exempt income and claim for Tax Refund on entire TDS
CAclubindia
