Mr. A is having Agriculture Land Value as per Stamp duty Is Rs 10,00,000, the said land is used for agriculture purpose . Mr. B is Having Plot (N A Land) on which there is Reservation for School and open Ground, Value as per Stamp duty Is Rs 10,00,000. Mr. A and Mr. B have exchange said land with each other without any other consideration. In registered exchange deed only details regarding exchange of property is mentioned no where value of the said property is mentioned. For stamp duty payment on exchange deed higher value is considered. what will be the tax position in hands of Mr. A (regarding Capital Gain as well as other income under section 56(2)(x) )

Reply—Agricultural land in Rural area is not a capital asset. Therefore its sale value is "excluded" for income tax calculation. It is not required to show the proceeds on sale of Rural agriculturlal land while filing ITR.  Mr. A is not required to show sale of agricultural land.

Under section 56(2)(x) where any person receives, in any previous year, from any person or persons on or after the 1st day of April, 2017 any immovable property without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property shall be chargeable to income-tax under the head "Income from other sources". Therefore, in case of recipient of gift it will be taxable.

For specific reply of your query please send the copy of exchange deed.