I am an NRE, since last 10 years I have been working in Gulf, hence I have not filed income tax return since then. Now I plan to sell my agricultural land in rural area and immediately reinvest in agricultural land in Nasik itself. I seek your advice on ITR.
A rural agriculture land is not a capital assets u/s 2(14) of Income Tax Act, 1961, thus no capital gain tax is charged on sale of rural agriculture land.
https://www.indiabudget.gov.in/budget2013-2014/ub2013-14/mem/mem1.pdf
please visit on above link and read on page no. 13, in this government defined which agriculture land is rural and which is non rural.
Rural agricultural land is not a capital asset and hence there would be no capital gains.
Regards,
Nikhil.
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 e-filing of ITR.
Hi
If you are reinvesting the capital gains into another agricultural land, you shall be entitled to exemption of capital gain taxes under section 54B.
However, you need to file return for the financial year(s) in which both sale and purchase transactions take place to claim the capital gain exemptions.
We may assist you with return filing.
Hi,
Sale of rural agricultural land does not attract income tax and does not make you liable to file return in India.
However, make sure that it falls within the definition of rural agricultural land. If it's an urban agricultural land then, you will have to file return in India to take exemption from capital gain tax.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
no need to file, but confirm that the land is agricultural as per regulations of income tax.
