Capital Gain on Rural Agriculture Land

Dear Sir I Sale Rural Agriculture Land in 2012-13 In 4 Lakh Rupees But Guide Line Value Of Land Is 580100 and Now I Received Income Tax Notice. So Am I Liable for Capital Gain
Replies (5)
Quick Summary
This discussion clarifies that capital gains tax is generally not applicable to the sale of rural agricultural land, as it's not considered a capital asset. Even if the sale price is lower than the guideline value, Section 50C, which addresses this, doesn't apply to exempt agricultural land. While you may not be liable for capital gains, it's advisable to consult a tax advisor and provide a detailed explanation to the assessing officer with supporting documents.

Since your land was not a Capital asset, so it will not be taxable. You should reply to assesment officer after consulting your tax advisor.
Section 50C is not applicable to sale of agricultural lands if it is exempt.

Here you sold rural agri land which is exempt as it's not captial asset.

Section 50C talks about the determination of the sales consideration in certain circumstances in order to compute the capital gain arising from the transfer of capital assets being land or building or both .

(This talks about guide line value)

In nutshell, You are not liable for captital gain. But write a detailed explanatory letter alongwith copy of supporting documents.
My village is Nagar Panchayat which consists of 3 villages and has a population of 11000 According 2011. but my land is 3 kilometers away from the Panchayat office.
But how to show income from sold of Rural agricultural land in ITR
We did not file income tax returns because the seller is a farmer and does not even have a pencard. If the land is sold, the notice is received.

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