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Income Tax Appellate Tribunal on Farm Land: If you are trying to legalize your money, which is not in the eyes of the government or if you are not legally valid, then you are buying farming land, then be careful now before doing so. Because now such people are closely watching the tax department. Such people are now being targeted by tax authorities, who are investing money in cultivated land. The recent decision of the Income Tax Appellate Tribunal (ITAT) can increase the difficulties of such people.
ITAT is an independent judicial institution that hears appellate cases. According to an ET report, the decision of ITAT will affect the agricultural land buyers.
ITAT decision on agriculture land
For example, assume that a person deal with the agricultural land of market price of Rs 10 crore from the farmer. Only 2 crore rupees are shown in its documentation. In such a situation, eight crore rupees are being given separately. In this case, the seller is free from monitoring towards the farmer income tax authorities. Agriculture land is not considered capital property from the Income Tax Department. In such a situation, there is no capital tax on its earnings from its sale.
But when this land will be sold again from the banking channel at a value of 10 crores, then initially the buyer of this land can be asked to disclose the hidden fund of 8 crores.
Now those who do so are not good!
According to reports, for years, individual effective people such as Babu, entrepreneurs, political personalities to the stars of the entertainment world have been buying cultivated land in such low money and after that they have been working to legalize their money by selling it at high market price.
This is because the land with agriculture has got special status. On the one hand, while the buyer in the city has to pay tax on the market price and the difference of transaction value, on the other hand there is no such tax provision in the Agriculture Land. While the Income Tax Appellate Tribunal of Ahmedabad is exempted from considering the agriculture land as a capital gan, it has expressed concern over cases like selling assets worth 10 crores for 2 crores.
