It Return of agriculture income

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A client received £25 Lakh from the railway for selling agricultural land located in a rural area, 50km from a municipality. The user is seeking assistance on how to correctly report this income in their tax return. The advice given is to show it under the exempt income schedule, referencing Section 2(14) of the Income Tax Act which defines capital assets and excludes certain agricultural lands.

mukeshyadav

mukeshyadav (Querist)

12 October 2020 Dear all
A client received 25 Lakh from railway for sale of agriculture land situated in rural area. 50 Km distance from municipality.

But while I am preparing income tax return i have problem where this income is shown ,

Plz help me how to show this income in income tax return.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 October 2020 Show it under exempt income schedule.

mukeshyadav

mukeshyadav (Querist)

14 October 2020 Plz write Section

Thanks sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 October 2020 Section 2(14) defines the term capital asset. It provides an inclusive definition of capital asset. As per section 2(14) capital asset does not include agricultural lands in India within its ambit. But all agricultural lands in India are not out of the scope of capital asset.

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