Rural Agri Land (Sale proceeds to be accepted in Parent Bank Account)

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This query is : Resolved

Quick Summary

This discussion addresses whether a father can legally receive the full sale proceeds of rural agricultural land owned jointly with his two sons into his personal bank account. The consensus is that this is permissible, especially as the transaction is conducted via RTGS and no capital gains tax is applicable. However, it is advisable for all three owners to declare the exempt income in their respective Income Tax Returns (ITRs) to preempt any queries from the Income Tax Department.

Maheshwari Maheshwari

Maheshwari Maheshwari (Querist)
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10 April 2025 Sir,

If Rural agricultural land is in 3 names (father+ 2 sons). While selling, father wants to accept full money in his own bank account (because he doesn't want to distribute to sons at this point of time).

Can the father do that?

(Note - Full transaction through RTGS, no cash involved. Also the land is Rural Agri, so there is no capital gains tax anyway)

The AIS of sons will show the asset sale, so do the sons need to explain something in their ITR?

Thanks