There is an agricultural land which is situated in a rural area which is outside the jurisdiction of a municipality cantonment board , it is not covered under the definition of capital asset. so the sale of land will be exempted as agricultural income or it will be treated as income from other sources.
Kindly let us know the head of such income
Dear Firoz
A similar query was discussed earlier, the link is:
/experts/sale-of-agricultural-land-where-to-show-in-itr-form-736630.asp#.U8ktEFYxGlJ
I feel what Chakrapani Sir said in that discussion is right. That is, it doesn't even fall under the definition of Capital Asset, then there is no Capital gain. So technically it is not right to call it or disclose it as "exempt income". This means there is no provision in the ITR to disclose such an income. As per the definition of Capital Asset u/s 2(14), rural agriculural land is held at par with personal effects (say your clothes) for the purpose of defining Capital Asset. So, if you had sold your clothes to someone, you would not have shown it in the ITR.
However, more opinion is solicited before deciding on whether to disclose or not.
Regards
Ajay
CAclubindia
