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Tax on Sale of ancestor agriculture land

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Niraj Kumar Srivastava

21 Points Posted on 06 February 2020

1) I sale ancestors agriculture land in January and take amount in bank. whether this amount is taxable or not.
2) should I show this amount in ITR if yes in which section

Replies (3)

Quick Summary

If you've sold ancestral agricultural land, the taxability depends on its location. Rural agricultural land is generally exempt from capital gains tax. However, urban agricultural land is taxable. You should still declare the transaction and any amounts received in your Income Tax Return (ITR), even if exempt, under the appropriate section for 'income from other sources'.

Roshni

Studwnt

730 Points Posted on 06 February 2020

Agriculture land is not capital asset...therefore it is exempt. you can show it under income from other source

rama krishnan

5751 Points Posted on 06 February 2020

If it's rural agricultural land then it's exempt and show it as exempt income against the respective column in ITR

Monu Prajapati

60 Points Posted on 07 February 2020

As per provision of income tax if you have sold agriculture (rural) that is not taxable but if it is urban then you are required to pay tax on that land still if you are receiving money in bank and cash then you have to disclose the transfer and receipts of cash as well in ITR as new forms has section for such disclosures.