Question: I’m 62 years previous retired from personal sector. I’ve been utilizing ITR 1 for submitting my ITR as I get ₹5000/-as superannuation from LIC and haven’t any different earnings. Recently, I bought my agricultural land located in my village at distant place. The sale consideration is deposited in financial institution. I want to know which ITR kind I ought to use. – Rajesh
Answer: Any revenue arising from sale of a capital asset is taxed as capital good points underneath the earnings tax legal guidelines. The agricultural land located in rural space isn’t thought of as capital property underneath earnings tax legal guidelines. Since the agricultural land bought by you is located in rural space and which isn’t handled as capital asset and any revenue acquired on sale of such asset can’t be taxed as capital good points. There is distinction between an merchandise being exempt earnings and it not being an earnings in any respect. The income earned by you on sale of the agricultural lands are usually not handled as earnings underneath the earnings tax legal guidelines. You are required to reveal your exempt earnings in your ITR however not an merchandise which isn’t earnings in any respect. Since the income on sale of agricultural land located in rural space isn’t an earnings taxable underneath the earnings tax legal guidelines, you don’t have any obligation to reveal it in any respect. So you needn’t to reveal the identical in your earnings tax return. You can use ITR 1 for this 12 months additionally. However, should you really feel that you don’t want to face any inquiry in future, you should still present this quantity underneath Exempt Income within the house supplied in ITR I.
Balwant Jain is a tax and funding professional and might be reached on [email protected]
Subscribe to Mint Newsletters * Enter a legitimate e-mail * Thank you for subscribing to our publication.
Never miss a narrative! Stay linked and knowledgeable with Mint.
Download
our App Now!!
