Sales of Aguriculture land situated in Rural Area

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A salaried individual sold agricultural land in a rural area during FY 2013-14. As per Section 2(14), this land isn't considered a capital asset, making the sale proceeds a capital receipt, not income. The query questions whether this capital receipt needs to be declared in the 'exempted income' column of the ITR. Following receipt of a Section 148 notice, the user seeks guidance on whether to amend the return to include it as exempted income or to reply stating the original return was filed correctly.

M.M.SURANA

M.M.SURANA (Querist)

01 July 2021 Dear Expert, One my client who is salaried employee , sold the aguriculture land situated in rural area during the FY 2013-14 . As per sec. 2(14) aguriculture land situated and rural area is not the capital assets, hence we have taken as a capital receipts not shown in ITR 2 in the col. of exempted income. My query is since it a capital receipt not a income, is it necessary to show in col of exempted income. Now he has recd. 148 notice, what is reply to be given , shall we include in exempted income and file return in response to notice u/s 148 or simply reply can be given please treat the same in response to your notice by quoting detail earlier return filled .