TAXABILITY OF INCOME

HELLO FRIENDS

I HAVE FEW DOUBTS ON CERTAIN ISSUES.

CASE STUDY : X IS  A SALARIED EMPLOYEE . HIS ITR 1 IS FILED. NOW IN P/Y 07-08 HE SOLD HIS RURAL AGRICULTURAL LAND ACQUIRED THROUGH GIFT FROM FATHER , GRANDFATHER AND SO ON..... TO GOVERNMENT FOR 1 CRORE .

NOW THE QUES IS WILL IT BE TAXABLE. AND SECONDLY WHICH ITR WILL BE SUITABLE .

AND IF IT IS NOT TAXABLE BECAUSE OF THE NATURE RURAL AGRICULTURAL LAND , THAN IN THAT CASE WHERE IT WILL BE SHOWN IN ITR AND AS WHAT ?????

IF ITS NOT SHOWN THAN  IN FUTURE QUES CAN ARISE FROM WHERE DID HE GET 1 CRORE IN HIS BANK ACCOUNT .

Replies (1)

RURAL AGRICULTURAL LAND IS NOT AN CAPITAL ASSET U/S 2(14)

SO ANY PROCEEDS ARISING FROM SUCH SALE IS NOT CHARGABLE AS SHORT/LONG TERM CAPITAL GAIN.

MORE EVER THE THE RURAL AGRICULTURAL LAND MUST BE NOTIFIED BY THE PRESCRIBED AUTHORTIY TO CLAIM THE EXEMPTION. SUCH TRANSFER MUST ARISE AS PER THE LEGAL DEED.

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