Capital gain on agrticulture land

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Narayan (Querist)
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25 November 2014 Hi,
I had an ancestral agriculture land which I sold to my wife in 2010. Now My wife is willing to sell that agriculture land. I want to know whether this will come under capital gain category or not.This land is in completely rural area(no near by municipal corporation with 10 km). We still doing farming on this land.

If this will come as capital gain, let me now the ways to save capital gain on it.

If this will not come as capital gain, Does she need to show this sell at the time of income tax return filing or she need not to mention it at the time of income tax filling.

Narayan

Amol S Joglekar

Amol S Joglekar (Expert)
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25 November 2014 Since it is rural ahricultural land, it is NOT a capital aseet and hence the gain is not taxable.
You can show the said transaction under EXEMPT income.

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Narayan

Narayan (Querist)
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25 November 2014 Thanks Mr. Amol S. Joglekar for the quick reply.

Can you please also let me know under which section of income tax this can be shown as EXEMPT INCOME.

Amol S Joglekar

Amol S Joglekar (Expert)
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25 November 2014 Basically it is a capital receipt and hence not taxable. In the ITR, it may be shown under exempt income.

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