I sold some land. Which ITR form should I use

Question: I am 62 years old retired from private sector. I have been using ITR 1 for filing my ITR as I am getting 5000/-as superannuation from LIC have no other income. Recently, I sold my agricultural lsituated in my village at remote place. The sale consideration is deposited in bank. I wish to know which ITR form I should use. – Rajesh

Answer: Any profit arising from sale of a capital asset is taxed as capital gains under the income tax laws. The agricultural lsituated in rural area is not considered as capital assets under income tax laws. Since the agricultural lsold by you is situated in rural area which is not treated as capital asset any profit received on sale of such asset cannot be taxed as capital gains. There is difference between an item being exempt income it not being an income at all. The profits earned by you on sale of the agricultural lands are not treated as income under the income tax laws. You are required to disclose your exempt income in your ITR but not an item which is not income at all. Since the profits on sale of agricultural lsituated in rural area is not an income taxable under the income tax laws, you have no obligation to disclose it at all. So you need not to disclose the same in your income tax return. You can use ITR 1 for this year also. However, if you feel that you do not wish to face any inquiry in future, you may still show this amount under Exempt Income in the space provided in ITR I.

Balwant Jain is a tax investment expert can be reached on [email protected]

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected informed with Mint.
our App Now!!

Source link