Any revenue made on Sale of an agricultural land is exempt as it isn’t a capital asset. Do I want to point out the income made on sale of agricultural land within the Income Tax Return (ITR) kind? This will not be showing within the Annual Information Statement (AIS) and no tax has been deducted at supply for the obligatory acquisition made by NHAI .Request your recommendation.
Each and each land used for agricultural objective will not be handled as agricultural land for the aim of revenue tax legal guidelines. It is simply the agricultural land which is located exterior the native limits of municipalities and cities relying on the inhabitants of town/city and distance from town or city limits which is handled as agricultural land.
So in case your agricultural land falls inside the definition of agricultural land as per revenue tax legal guidelines, the identical will not be handled as capital asset for taxation objective. Since this isn’t a capital asset for capital features functions, any income made on sale/switch of it’s also not an revenue below the revenue tax legal guidelines and due to this fact will not be required to be disclosed within the ITR wherever.
Please perceive that there’s distinction between a receipt not being an revenue and the identical being an exempt revenue below the tax legal guidelines. So agricultural revenue is an exempt revenue whereas any income made on sale of agricultural land, which isn’t a capital asset, will not be an revenue in any respect for tax objective.
So the agricultural revenue is required to be disclosed within the ITR and is required to be taken under consideration for arriving on the common price of tax relevant to you whereas any revenue made on sale such agricultural land will not be required to be disclosed within the ITR.
Balwant Jain is a tax and funding skilled and will be reached on [email protected] and @jainbalwant on Twitter.
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