It return filing

Your converting the agricultural land into a non-agricultural land is not the basis for determining whether the sale of the said land will attract Income Tax of Not.

As per Section 2(14) Income Tax Act, 1961, "capital asset" does not include agricultural land in India.

A land will not be considered as "agricultural land"  if is  

(a)  situated iwithin a municipality, Muncipal Corporation, or a Contonment Board and having a population of 10,000 or more; or

(b)  (i) situated within a distance of two kilometres, from the local limits of any municipality or cantonment board mentioned in item (a) and which has a population of more than ten thousand but not exceeding one lakh; or 

(II)  situated within a distance of six kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or 

(III)  situated within a distance of eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh.

Therefore, first you have to ascertain whether your land in question falls within any of the above conditions.

If it falls in any of the items mentioned above, then it is not an agricultural land and it will attract Long Term Capital Gains Tax.

To determine the Long Term Capital Gain, one has to first know the Fair Market Value of the land in question as on 1.4.2001.  (If you have purchased the land after 1.4.2001 then the purchase value can be taken as the base.)  You have to approach the Government Approved Property Valuer in your area to find out the Fair Market Value of the land as on 1.4.2001.  He will charge to give you the Fair Market Value certificate.

If the Fair Market Value as on 1.4.2001 is ascertained, say that is Rs. "A".

Amount of Capital Gain = Sale Proceeds MINUS Expenditure (like Advertisement, Commission paid to Authorised Broker against valid receipt etc.) MINUS the Indexed Cost of Acquisition of the Asset.

Indexed Cost of Acquisition of the Asset can be worked out by following the formula:  A x 280 divided by 100.

(Here "A" is the Fair Market Value as on 1.4.2001; 280 is the Index for property sold in the year 2018-19; and 100 is the base index value in the year 2001)

For Example:  If A is Rs. 1 lakh then the Indexed cost of Acquisition as on 2018-19 will be:  1,00,000x280/100 = 2,80,000/-

Capital Gain (if there are no expenses incurred for sale) :  Rs. 7,13,000/- minus Rs. 2,80,000/- = Rs. 4,33,000/=

Capital Gains Tax = 20% of 4,33,000/- which comes to Rs. 86,600/-

By adopting any one of the following methods the payment of Capital Gains Tax can be avoided.

(1) By purchasing a new property for a value which is not less than Rs. 4,33,000/- within 2 years from the date of sale.

(2) By taking National High Way Authority Bond for the entire amount of Rs. 4,33,000/- for 5 years.  The Bond will give 5.75% interest, but the interest is taxable.  In case no new property is purchased, the Bond method is most advisable, as in this method, even though the interest rate of 5.75% is less than the normal rate of interest, still since the amount of Rs. 86,600/- is not being spent but being invested, the ultimate amount that will remain in hand after 5 years is higher compared to Rs. 3,46,400/- (433000/- minus 86600/-)

As regards, your IT Return relating to salary issue:

1. Even though your company has not paid any salary from August onwards, yet, please check up whether they have closed their accounts for the financial year 2017-18.  In that, how they have treated the liability towards payment of salary.  In other words, if they have shown salary as payable, then you are liable to include the amount of salary from August to March and work out your I.T. due after taking into account the TDS if any.

2. If the Company has not taken into account the salary payable and closed its account, then in that case, you need not take into account your salary for August to March.  It is enough if you show your salary from April to July and file IT Return after taking into account the TDS and pay the balance tax payable if any with interest.

3. In case the Company has not closed its account so far, and it is not possible to ascertain the salary position, it is a very tricky situation and you have problem in your hand.  In any case, you can file your IT Return based on the salary already received.  This will save from you the fine being levied by the IT Department for not filing the return in time.  In case the accounts of the company is known later, you can revise your return accordingly.  There is provision for revising your IT Return.

Thank you very much,wonderful informations