The capital gain will be exempt for the entire amount. make sure you receive the money through banking channel.
Also make sure that the land is rural agriculture land as per income tax act.
Capital gains tax on rural agricultural land
We want to sell our rural agricultural land of 20 acres for ninety three lakhs ,the govt rate of the property is thirty lakhs only .As per the rule capital gains tax is exempted on rural agricultural land so will it be exempted for only govt rate is for thirty lakhs only or will it be exempted for whole ninety three lakhs ?The land is registered on my mother's name who doesn't file ITR,will there be any other taxes ,how to make transaction genuine ,do we need to pay ITR after transaction.
Asked 5 years ago in Capital Gains Tax
Dear Sir,
Hope you are doing well !!
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.
Hi
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.
It is for entire value as Rural agricultural land is not capital asset.
No need to file ITR just for this transaction.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
- Rural agriculture land is not a capital asset therefore capital gain arises on it is exempt from tax but you should file the ITR of mother showing the transaction in the correct schedules. Filing of ITR is mandatory otherwise you will receive the compliance notice. I may assist you in filing of ITR.
Hello,
Sale of Rural agriculture land is exempt from capital gain tax. It would be advisable to file the ITR of the mother declaring such capital gain transaction.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
So we need to file ITR next yr ..what will be the process after receiving the amount via rtgs ?Do we need to inform any authority after receiving the money ?Can we make FD for the entire amount for now .
Asked 5 years ago
Yes, you need to file the ITR next year and show the same under the head exempt income while filing ITR.
Yes, you can make FD for the entire amount for now. There is no problem in it.
Hi
You need to file ITR .
This income will be shown under the head exempt income.
Yes You can do so.
Yes, ITR should be filed.
No such requirements.
Yes, you can utilise the funds as per your choice.
No such information required to be provided if your land is agricultural land and situated in rural are. No need to file return if this is the only income.
Yes you can
No information to be provided. You can utilize the amount for investment in FD.
- Yes you need to file ITR next year i.e. A.Y. 2020-21.
- Prefer to receive payment through account payee cheque only.
- No need to inform any authority
- Yes you can make FD out of the proceeds but don't forget to include FD interest in the ITR.
We are selling our agricultural land for 92 lakhs buyer wants to give the whole amount on the day of registry through rtgs or cheque ,he is not agreeing to pay a day before registry .But if after registration there would be any server issue or cheque bounce case we cannot do anything .What would be the perfect solution in this case as the buying party is not so genuine as we have heard .
Asked 5 years ago
In case of RTGS it would be ok since money would be transferred to you the same day.
You may opt for taking a demand draft in case there are doubts in the payment.
It is a safe and secure system for funds transfer RTGS.
You can also consider DD for the same.
Hi
You can accept payment through RTGS or you can take demand draft.
You can accept the payment through Demand Draft or RTGS.
Take RTGS and then sign papers.
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