Tax on sale of land

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Agricultural land in rural areas is generally exempt from capital gains tax. However, land with a pond, idle areas, or trees may be treated differently. Cash payments are permissible up to £20,000. When filing your Income Tax Return (ITR), use ITR 2 and declare the sale under the exempt income schedule.

karthika

karthika (Querist)

29 June 2022 My father in law is selling his agricultural land , I wanted to know about the capital gain implications. The agricultural area is in rural area so I believe there is no tax , but I have few doubts :
1. He also has a piece of land ( containing pond and the other area is lying idle and has few coconut trees and other plants ) how about the tax for that piece of land .
2. The seller has asked if father can except cash , if yes till how much is permissible ?
3. How to show in itr and which itr is to be filed

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 June 2022 Yes, agricultural land in rural area is exempt from tax.
1 It will be considered as agricultural land exempt from tax.
2 No cash permissible for sale value exceeds 20,000.
3 File ITR 2 show it in exempt income schedule.

karthika

karthika (Querist)

29 June 2022 Thank you so much sir

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