One of my friend received consideration on transfer of agriculture land worth 20 lacs. The land is acquired under complusory acquisition by Railways. Is this transaction liable to tax or is exempted. If it is exempted where should we disclose the same. Please share your thoughts.
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Agriculture income
Replies (5)
Firstly you need to see whether the agricultural land which has been acquired by govt is rural or urban one. If it is covered under urban area then it is a capital asset which is the basic requirement for being taxable. But if the land is rural agricultural land then such transfer is exempted for any tax.
thank u nitish.. it is in Rural area, but should i file the ITR if yes where to disclose such income in ITR??
You need to file return only if the gross total income exceeds the basic exemption limit. The above income doesn't need to be included to find out GTI because it is exempted from income itself.
FOR SAFER SIDE YOU SHOULD FILE ITR
| Originally posted by : krishna kotturi | ||
 |
thank u nitish.. it is in Rural area, but should i file the ITR if yes where to disclose such income in ITR?? |  |
Agreed with the reply of Mr.Suresh, moreover in my opinion there is no liabilty for you to disclose such exempted income.
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