26 July 2012
One my Client who is a Central Govt. Employee and his Income Tax liability was fully deducted at source by his employer for the financial year 2011-12. The problem is that he sold a purely agricultural land during the F.Y. 2011-12 having all official records at Rs. 3,50,000 through Cheque. This amount is Exempt from Income Tax but how to show this amount in Income Tax Return ? Which ITR should be filled up and where this amount to be put in ? ITR-1 has a Column in the last line but that has a limit of Rs. 5,000/- (Max). If it should be ITR-2, then how and where can I show ? Plz suggest at the earliest. Thankx a lot & all the best for 31st July, 2012.
26 July 2012
Dear Anonymous, According to me the form applicable is ITR-1 since he has got only salary income and do not have assets held outside India( I presume that he doesn't have assets outside). Please note that since agricultural land in rural area is not regarded as a capital asset, there is no income which is asses sable under the head "Capital gains". Computation under that head arises only when u make gain on transfer of a CAPITAL ASSET. since u have not transferred any CAPITAL ASSET as defined under the Act, the income is not assessable at all. So if there is no column asking you to furnish the said info, you have no obligation at all. Hope u r clear.
CAclubindia
