Agriculture land ki sale in itr

where do we report sale of rural agriculture land in itr ??
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Quick Summary
When selling rural agricultural land, it's generally not considered a capital asset and thus not subject to capital gains tax. If declared in your AIS, you should report it under Schedule EI (Exempt Income) in your ITR. For urban agricultural land, which is a capital asset, you'll need to file ITR-2 and report capital gains in Schedule CG.

Generally it is not declared in ITR, as Rural Agricultural Land is not a capital asset.

In case it is declared in AIS report, then you may enter the details in Schedule EI.

The ITR form you need depends on whether the agricultural land was rural (exempt) or urban (taxable).

Case 1: Rural agricultural land (outside distance limits from municipality)
This is NOT a capital asset. No capital gains tax applies. You do not fill Schedule CG.
- File ITR-1 if your only other income is salary or pension (and total income is within limits)
- File ITR-2 if you have other capital gains, more than one house property, or foreign assets
- Declare the sale amount under Schedule EI (Exempt Income) in your ITR so the income tax portal sees you have acknowledged it
- In AIS, mark the transaction as correct so there is no mismatch flagged

Case 2: Urban agricultural land (within municipality distance limits)
This IS a capital asset. Capital gains are taxable.
- File ITR-2 (mandatory for capital gains)
- Report in Schedule CG ,  long-term if held more than 24 months (12.5% flat rate), short-term if within 24 months (slab rate)

For the full breakdown of which ITR form to use for different income combinations in AY 2026-27 ,  including salary, capital gains, house property, and agricultural income ,  this [ITR form selection guide](https://taxgarden.in/blog/which-itr-form-ay-2026-27-key-changes) has the decision tree.

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