Sale agricultural land

Undisclosed income from sale proceeds of agricutural land deposited into bank by assessee,since registry was made for small amount and part of consideration was received in cash (Substantial Amount) which is deposited into bank account. Accordingly assessee has received a notice for furnishing the details of the same.

How to reply AO in such cases?

Replies (5)
agricultural land sold by you is...rural or urban
from your query it's understood that the sale proceeds received over and above registration value has been deposited in your bank account if it's the case then the purchaser has to confirm that he has paid over and above registration value. however if you have received sale consideration in cash in excess of rs. 2 lakhs then section 269st will be invoked and you have to pay the entire amount as penalty under 271da

Thanks for reply sir. But my doubt is that, since agricultural land is not a capital asset and capital gain arise out of it is fully exempt from income tax, Still does it attracts penalty u/s 269ST ???

If yes, in such cases is it possible for assessee to file ITR showing full amount of consideration ( including excess cash over registry) under the head exempt income?

269st doesn't differentiate between exempt income and taxable income. whatever might be the nature of receipt, it shouldn't be received in cash in excess of 2 lakhs. if received then penalty under section 271DA will be invoked. the better option is to, you yourself for the a. y. 2019-20, declare the entire cash received in respect of sale of agricultural land as your gross receipts under 44ad and declare 8% of gross receipts as total income.
let's wait for better suggestions from experts

Ok.. Thanka you.

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