Sale of Agricultural land in Rural Area

[Anup Kumar Grover]

An assessee has sold its Agricultural Land, as per section 2(14) is not an assets, subject to Capital Gain.

Being It is in Rural Area, not covered in any municipality. 

Q. Whether in the Income Tax Return to be filed, it be shown as Capital Gain and Exempted or it is not required to be mentioned in the Income Tax Return.?

Q. Whether any Information is required to be given in AIR Coloum,of Return Forms?

[CAGOPALJI AGRAWAL]

Since it is not a capital assets hence no concept of exemption would be applicable and as per new provisions, AIR has been withdrawn.

AI Summary

Agricultural land not a capital asset, so its rural sale is not treated as capital gain and no AIR reporting applies. Sale of agricultural land in a rural area is not a capital asset and therefore does not produce capital gains or an applicable exemption; accordingly the sale need not be reported as exempted capital gain in the return. Reporting in the Annual Information Reporting column is not required because AIR disclosure has been withdrawn.