Sold agricultural land
This query is : Resolved
03 January 2013
sold agri land in current financial year which was complete out of ambit of capital gain's, howsoever do i have to mention that i have sold agri land while filing income tax return for the year?
If not then perhaps chances are i will receive a letter from the tax guys, later on period. how to avoid or tackle that?
If not then perhaps chances are i will receive a letter from the tax guys, later on period. how to avoid or tackle that?
03 January 2013
If you are e-filing return then you dont have to mention anything at the time of filing return. But include this in your computation of income and if and when you receive your first notice for assessment provide them the working and the documents to prove that the same is agricultural land.
If you are filing manual return, it is advisable that you have a note in your computation stating the computation.
If you are filing manual return, it is advisable that you have a note in your computation stating the computation.
03 January 2013
If you are e-filing return then you dont have to mention anything at the time of filing return. But include this in your computation of income and if and when you receive your first notice for assessment provide them the working and the documents to prove that the same is agricultural land.
If you are filing manual return, it is advisable that you have a note in your computation stating the computation.
If you are filing manual return, it is advisable that you have a note in your computation stating the computation.
03 January 2013
kisan bahi, is sufficent i suppose, @ present i am a retired guy with no earnings, and no pension, sold agri land :: i could not get the point to include amount in computation, i sold it for 15 lakhs, deposit in bank, however as per circle rate it was 49 laks though paid stamp accordingly, firmly the land was transfered to me in 1983, and far off so no cap gains ambit, perhaps section (50 c ) might be usefull..
kindly compute for me if possible
kindly compute for me if possible
25 July 2025
Got it — you sold agricultural land this year for ₹15 lakhs, but the circle rate is ₹49 lakhs, and the land was transferred to you back in 1983. You’re retired with no other income. Let me clarify the tax treatment and help you compute potential capital gains.
---
### 1. **Is agricultural land exempt from capital gains tax?**
* **Agricultural land in rural areas** (outside municipality limits, typically) is exempt from capital gains tax under the Income Tax Act.
* However, if the land is **urban agricultural land** or within city limits, it might be treated as capital asset liable to capital gains.
* Since your land was transferred in 1983 and presumably rural, chances are it’s exempt.
---
### 2. **About Section 50C (Stamp Duty Value)**
* Section 50C says that the **sale consideration shall be the higher of actual sale price or stamp duty value (circle rate).**
* Here, actual sale price = ₹15 lakhs, stamp duty value = ₹49 lakhs.
* Normally, capital gains are computed on ₹49 lakhs.
* However, **Section 50C applies only if capital gains are chargeable** in the first place.
* Since agricultural land is exempt, 50C **should not be relevant** (no capital gains tax).
---
### 3. **Do you need to mention the sale of agricultural land in ITR?**
* **Technically, you should mention all capital asset sales,** even if exempt, in the ITR Schedule for capital gains.
* For e-filing, if your capital gains are zero due to exemption, you can mention the sale price and exemption so that your return reflects the correct info.
* If not mentioned, the department might send a notice or query (especially if they get info on the sale).
---
### 4. **How to handle the difference in sale price and circle rate?**
* Since agricultural land is exempt, capital gains do not arise, so Section 50C’s higher value rule should not trigger tax.
* You can keep your documents handy (sale deed, proof that land is agricultural, municipal limits proof, etc.) in case of inquiry.
---
### 5. **Simple computation for your scenario**
| Particulars | Amount (₹) |
| -------------------------- | ------------------------------------------------------------------------------------------------ |
| Sale Consideration | 15,00,000 |
| Cost of Acquisition (1983) | Considered Nil (if purchased long ago and no documents) or market value on date (usually exempt) |
| Capital Gains | Nil (Agricultural land exempt) |
| Tax Payable | Nil |
---
### 6. **Suggestions**
* In your ITR, mention the sale under capital gains with exemption claimed.
* Keep proof ready that the land is agricultural.
* If notice comes, submit documents with your explanation.
* No tax payable as per your facts.
---
If you want, I can help draft the exact entries for the ITR or a letter for income tax in case of queries. Would that help?
---
### 1. **Is agricultural land exempt from capital gains tax?**
* **Agricultural land in rural areas** (outside municipality limits, typically) is exempt from capital gains tax under the Income Tax Act.
* However, if the land is **urban agricultural land** or within city limits, it might be treated as capital asset liable to capital gains.
* Since your land was transferred in 1983 and presumably rural, chances are it’s exempt.
---
### 2. **About Section 50C (Stamp Duty Value)**
* Section 50C says that the **sale consideration shall be the higher of actual sale price or stamp duty value (circle rate).**
* Here, actual sale price = ₹15 lakhs, stamp duty value = ₹49 lakhs.
* Normally, capital gains are computed on ₹49 lakhs.
* However, **Section 50C applies only if capital gains are chargeable** in the first place.
* Since agricultural land is exempt, 50C **should not be relevant** (no capital gains tax).
---
### 3. **Do you need to mention the sale of agricultural land in ITR?**
* **Technically, you should mention all capital asset sales,** even if exempt, in the ITR Schedule for capital gains.
* For e-filing, if your capital gains are zero due to exemption, you can mention the sale price and exemption so that your return reflects the correct info.
* If not mentioned, the department might send a notice or query (especially if they get info on the sale).
---
### 4. **How to handle the difference in sale price and circle rate?**
* Since agricultural land is exempt, capital gains do not arise, so Section 50C’s higher value rule should not trigger tax.
* You can keep your documents handy (sale deed, proof that land is agricultural, municipal limits proof, etc.) in case of inquiry.
---
### 5. **Simple computation for your scenario**
| Particulars | Amount (₹) |
| -------------------------- | ------------------------------------------------------------------------------------------------ |
| Sale Consideration | 15,00,000 |
| Cost of Acquisition (1983) | Considered Nil (if purchased long ago and no documents) or market value on date (usually exempt) |
| Capital Gains | Nil (Agricultural land exempt) |
| Tax Payable | Nil |
---
### 6. **Suggestions**
* In your ITR, mention the sale under capital gains with exemption claimed.
* Keep proof ready that the land is agricultural.
* If notice comes, submit documents with your explanation.
* No tax payable as per your facts.
---
If you want, I can help draft the exact entries for the ITR or a letter for income tax in case of queries. Would that help?
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