LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Agricultural income

SANATAN MAITY (Accountant) (34 Points)

07 August 2016

How can I reply against a Notice received from IT for the AY 2013-14 for not showing amounting to Rs.80 lakh from sale of Agricultural Land

Reply
Follow
Share

11 Replies

SANATAN MAITY (Accountant) (34 Points)
Replied 07 August 2016

Please give reply dont ignore to help.

1 Like

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 07 August 2016

Is the land in question in non rural area an whicg FY it pertains to?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 07 August 2016

As per S.2(14) (iii) of the Income Tax Act, 1961, an agricultural land situated in specified areas is not considered as capital asset. The specified area is defined in the schedule under the section. So, when you sell such land, there will not be any capital gain tax implications on sale.

The sale proceed is directly credited to capital account, and you need not declare it as Exempted income also.

You can produce your facts to AO, for his satisfaction.

1 Like

SANATAN MAITY (Accountant) (34 Points)
Replied 07 August 2016

The land situated in rural area and FY 2012-13

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 07 August 2016

Mr.Dhiraj Sir is right. If your agricultural land is situated in rural area as per sec.2(14)(iii), then it is not a capital asset hence there will be no capital gain on such transfer. It is capital receipt not liable to income tax.

Prepare your reply based on this ground. It will be better if you take the help of tax expert .

1 Like