Sale og agricultural land
This query is : Resolved
29 July 2015
A farmer has sold his agricultural land of Rs. 30,00,000/- which is received in bank saving account from party in the financial year 2011-12. Recently farmer has got a letter from Income Tax Dept. It was mentioned there in letter that transactions above Rs. 10,00,000/- has been done in the FY as mentioned above which is noticed through AIR information by department. Now the Department is asking for relevant details for the transaction. As seller party is farmer, he has never filed ITR. Is he liable for payment of tax? or what are other obligations for this case he may face while scrutiny?
29 July 2015
Dear Kriti, Agriculture Land is not a capital asset hence there will be no capital gain on sale of the land. Hence it is exempted from the tax. Please reply accordingly.
Message likes :
1 times
29 July 2015
As he is having only agricultural income and has sold only agricultural land he is not liable to pay tax. However the bank deposits will have to be explained in response to notice by furnishing documentary evidence of sale of agricultural land such as sale deed etc. and copy of bank account. A copy of jamabandi of agricultural land sold may also be furnished if the farmer has a copy of it so as to establish the ownership of agri. land.
Message likes :
1 times
29 July 2015
Thanks CA DC Bansal Sir,
So,we will have to present copy of bank accounts and copy of land registry before ITO? or what other documents we can present?
So,we will have to present copy of bank accounts and copy of land registry before ITO? or what other documents we can present?
30 July 2015
You just have to give a reply stating the fact that the deposit is made out of consideration of Agriculture Land sold. I think there should also be some provision for replying from your online login account.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Free lancer income
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG FOR GOLD ETFs
- Suggestions required for income tax filing-software (FY 2025-26)
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
