Mr.x received inherited rural agriculture land before 2001. And balance sheet shows agriculture land by rs.1.
In 2025, agriculture land sold for rs.45 lakhs. and same value shown in AIS.
What is the accounting entry in balance sheet of mr.x.
And how will show that land in income tax return?
Rural agricultural land is not capital asset as per IT act; hence it may ne declared under Schedule EI of ITR.
In balance sheet the amount is added to capital account after adjusting Rs. 1.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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