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
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.
CAclubindia
