05 January 2008
An individual owns 30 cents of agriculturakl land situated outside notified area-but he does not have proof to show that the land is agricultural - at the same time he has added agricultural income for rate purposes for the last 5 or 6 years Now the question is whether he will have to pay tax if he transfers possession of this land to a builder for construction under a joint development agreement - What is your answer to the above? Alternatively if he converts the property into stock in trade and offers it for a Joint Development , he can delay payment of tax without interest till he sells it in full or in part . If he selle only a part of this he'll pay only proportionate tax - otherwise full tax-in this case he will be required to pay tax on business income as well in the year of sale. Which alternative is better for him ? Or is there any better tax planning?
08 January 2008
dear sir, Actually the property is agricultural and there were 12 yielding coconut trees and 3 yielding mango trees and others. But he did not care to obtain a certificate from the local authority showing that this land had such fruit bearing trees at the time of transfer and agricultural operations were carried on by the owner till that time. Now the only evidence is that the land owner had shown agricultural income during the past years. Please look at this problem with this background.
16 January 2011
Please clarify whether your land is not recorded as revenue land ? Please check with Patwari / revenue department, your land may be revenue land.
CAclubindia
