Filing Income Tax Return (ITR) for Land Sale

This query is : Resolved

Quick Summary

This discussion addresses whether an individual, Mr. X (aged 72), needs to file an Income Tax Return (ITR) after selling land for £10 lakhs, having purchased it for £50,000 in 2004. The consensus is that an ITR is required due to the capital gain. Furthermore, advance tax is applicable, and if not paid, self-assessment tax can be paid to mitigate interest. Failure to file may result in the tax department issuing a notice and imposing penalties.

Garv Sharma

Garv Sharma (Querist)

19 April 2021 Hello
My question is , Mr.x ,age 72 never filled income tax return till yet due to non applicability.

However as on 21.01.2021 he sold a land (not agriculture one) for Rs 10lakhs which was bought in the year 2004 for Rs 50000. And he doesn't have any other income.

Questions:
1) Is he applicable to file return?
2) If yes, then is there any applicability of advance tax ?
3) consequences of not filling the return.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 April 2021 1 yes, he has to file ITR.
2 yes, advance tax payable.
3 Notice will be issued penalty levied.

CA Puja Sharma

CA Puja Sharma (Expert)

19 April 2021 1. Yes he will have yo file return of income with capital gain.
2. Yes advance tax will also apply. If not paid till date then you can also pay the self assessment tax today as per your estimate and save you interest liability on late payment of taxes.
3. Department will issue notice in future.

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