Regarding sale of agricultural land

Tax planning 831 views 1 replies

Dear all,

I want to know whether the following income is exempt under Income Tax or not (if possible please quote the section)

when a contract is entered to sell a agricultural land and the buyer pays some advance (also known as bayana)

unfortunately the buyer is unable to purchase the land for some reason and the seller forfeits the advance amount

is forfeited amount taxable in the hands of seller

note=the land is in village area and is not under municipal corporation 

Replies (1)

No amt is not taxable rite nw.. Bt in future if d land is sold then cost of acquisition amt will b reduced by d amt so forfeited earlier


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