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ashish (Querist)

30 September 2015 sir,. a person is selling rural agricultural land but purchaser required that land first be converted into non agricultural then he will make registry........ war tax implication are there...... secondly amt of consideration will be received by asseesse's son in son bank account because assesse not have bank account.... where any tax implication on son....

Amol S Joglekar

Amol S Joglekar (Expert)

30 September 2015 01. You need to check the distance as per sec 2(14) for rural agricultural land.

Once it falls in the definition of rural land, the gain is exempt even though the use is permitted to be NON agricultural.

If it is outside the definition of rural land, the gain is taxable even though the use is permitted to be NON agricultural

02. The gain is taxable in the hands of assessee even if the money is deposited in his son's account.

ashish

ashish (Querist)

30 September 2015 ohk....say instead of receiving in son account.... asseesse bank account is opened and consideration is received into it....... father has never filled income tax return and don't have pan.... whether father would be required to obtain pan and file return of income for exempt income...

Amol S Joglekar

Amol S Joglekar (Expert)

30 September 2015 normally at the time of registration of agreement/sale deed i the sub registrar office, the PAN is asked for.
You can very apply for pan even without having any source of income.

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