I have not shown rent received from rural agricultural income in previous years ITR filing.
Q1- So will i get a tax notice or penalty if i show rental income in next year ITR ?
Q2- Will their be any tax related issues or notice or penalty if i sell agricultural land?
Rental Income: Tax-exempt as agricultural income. Ensure you have a formal rental agreement proving agricultural use.
Sale Proceeds: Exempt from capital gains tax because rural agricultural land is not classified as a capital asset.
Recommendation: Maintain proper land records and documentation to prove the land's rural status and its use for agricultural purposes in case of any future inquiries from the Income Tax Department.
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