1 a year ago
I have purchased Rural agricultural land on 25/05/2018 for 63,38,000/- ( 58,20,000 + 3,28,000 Stamp duty + 90,000/- brokerage) and the same is sold on 68,60,000/- (71,00,000 - 1,40,000 brokerage). I do not want reinvest in purchase of agriculture land in future. Experts, my question is,
1. I learnt no capital gain arises, but if want to show the sale proceeds, WHERE and HOW to show exactly in ITR-2? Can I show the difference 5,22,000/- as gain? or if use the capital gain formula C.G becomes - 3,16,000/- Please advise.
CA Puja Sharma 16 Jul 2022
Rural Agricultural Land is not considered a capital asset under the Income Tax Act if it satisfies the following:
CA Deepika Boyina 17 Jul 2022
(a) If situated in any area which is comprised within the jurisdiction of a municipality and its population is less than 10,000, or (b) If situated outside the limits of the municipality, then situated at a distance measured- (i) more than 2 km, from local limits of the municipality and which has a population of more than 10,000 but not exceeding 1,00,000; or (ii) more than 6 km, from local limits of the municipality and which has a population of more than 1,00,000 but not exceeding 10,00,000; or (iii) more than 8 km, from local limits of the municipality and which has a population of more than 10,00,000.
If it does not satisfy the above criteria, it will be treated as a capital asset, and the profits will be taxable under the head capital gain.
For any assistance in tax filing, you can connect with us at email@example.com
Yes it can be shown in other source exempted income. Contact firstname.lastname@example.org for clarification