30 August 2016
I had a client who had sold agriculture land which was received from his father in 1951 for Rs. 3,000/- and during the financial year 2015-16 he had sold the agriculture land for Rs. 5,00,000/- and want to show the profit from sale of agriculture land.
So, which ITR form should I file and where this profit amount shown in Income Tax return for the financial year 2015-16.
30 August 2016
Dear Raaam,
Capital gain on sale of agriculture land is exempt if land is situated in rural area
Following land is agriculture land in rural area and is not capital asset:
Land situated in area within municipality or juridiction where population is less than 10000.
So if your land was in rural area then it's exempt from capital gain
Hope your query is resolved
Kindly like if my response has helped you
31 August 2016
Thanks for reply sir, But my question is whether the profit on sale of rural agriculture should be shown in Income Tax return or not. If yes then how it will be shown in income tax return for disclosure purpose...
31 August 2016
Dear Raaam,
As it's exempt income u can show it in exempt income coloum.
Hope your query is resolved
Kindly like if my response has helped you
CAclubindia
