Hi Friends
I need a clarification in this matter. If an agricultural land is sold, should we disclose the same in ITR. An agricultural land will not be a capital asset in the first instance thereby capital gain tax is not attracted. My doubt is should we disclose such a transaction in the ITR, if yes, where should we disclose ??
Any income chargeable under the head capital gain arising from transfer of an agri land is exempted from tax as per section 10(37). we need to include in the capital account. so we need not disclose in ITR.
any Profit arising on sale of agriculture land is not a capital gain as per Sec 45. So, Need not mention that profit under capital gain head.
CAclubindia
