• Salae of Rural Agricultural land and Purchase of Rural Agricultural land

I am a framer I sold my rural agricultural land in FY 2018-19 and also purchase another agricultural land in this year. I not filed my ITR till date. Now I want to file my ITR. Which ITR should I have file for Showing these transactions in ITR?
Asked 12 days ago in Income Tax from MURUM, Maharashtra

Dear Sir,

 

Hope you are doing well !!

 

Proceeds from sale of rural agriculture land is exempt from tax as rural agriculture land is not a capital asset. You need to file ITR-2 and show the entire proceeds under the "Schedule EI" under point 4.

 

We may assist you in ITR filing.

Payal Chhajed
CA, Mumbai
3904 Answers
54 Consultations

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It is advisable to take a phone consultation for detailed discussion.

 

We may assist you in entire procedure.

Payal Chhajed
CA, Mumbai
3904 Answers
54 Consultations

5.0 on 5.0

Hello,

 

Sale of rural agricultural land is tax free as per the income tax law.

You should file ITR-2 to declare this transaction under exempt income.

I hope that this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Madhya Pradesh
1755 Answers
5 Consultations

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For return filing assistance or further clarification, you can contact us directly or take a phone consultation.

Hunny Badlani
CA, Madhya Pradesh
1755 Answers
5 Consultations

5.0 on 5.0

Hi

 

Since it's was a rural agricultural land, it cannot be termed as a capital asset. Thus, there would be no capital gains and hence no question of capital gain exemption.

 

Such sale shall have to be shown as an exempt income in ITR.

 

 

Lakshita Bhandari
CA, Mumbai
4388 Answers
250 Consultations

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As far as selection of form is considered, you can use any ITR based on your other sources of income. 

If you had agricultural income exceeding INR 5000, you will have to file ITR 2.

 

Please note that such sale of rural agricultural land doesn't mean agricultural income.

 

We may discuss the issues further.

Lakshita Bhandari
CA, Mumbai
4388 Answers
250 Consultations

5.0 on 5.0

Sale of rural agricultural land is not liable to income tax it is not a capital asset as per income tax act.

Hence you are not liable to file income tax return for this transaction and no need to show it in income tax return.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
2847 Answers
25 Consultations

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ITR-2

Vivek Kumar Arora
CA, Delhi
3323 Answers
183 Consultations

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