Dear Sir,
I have sold an agricultural land in rural area for Rs. 7,00,000 on March, 2016. The amount was deposited in my bank account by the buyer . I understand that sale of agricultural land in rural area is not taxable. Do I still have to show the amount in my income tax return file. If I don't show the amount, and the amount get noticed by income tax officer in my account , what document should I produce to show that the amount is from an agricultural land sale?
Please help, Thanks.
Yes you have to declare the capital gains in your ITR.
I hope, you have registered sale/transfer deed with Sub-regitrar; the same will be required for all the enquries.
Thank You.
Under which section should I put the sale value in the ITR form. As agricultural land in rural area is not considered as captial asset, will the sale value still considered as capital gain?
Please reply. Thank you.
Not capital gain. as capital asset. If you wish to declare the gains, may put into Exempted income column. But in case of inquiry, you have to be prepared with these proofs.
It is an exempted Income and shown in the column of exempt Income. Please be ready with proof so that you can relax in future.
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