Dealing in land
This query is : Resolved
12 April 2014
An assessee deals in buying & selling of land (agricultural & non agricultural) and earns profit from it.
Under which head will the income be taxed?
Is capital gain attracted?
Under which head will the income be taxed?
Is capital gain attracted?
12 April 2014
The buying and selling of lands is his main activity then it is comes under business category and taxable and the head business income and capital gain not attracts.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
12 April 2014
It is not his main activity.
What will be the income proceeds?
What will be the income proceeds?
12 April 2014
Then it depending on the frequency of transactions, if he purchasing lands and selling it with in short time with the view of re-sale at the time of purchase then it is called business and income chargeable under the head income from business otherwise under capital gain.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
12 April 2014
Some lands are agricultural lands and some are converted.
Will the sale of agricultural land fall under agricultural income?
Will the sale of agricultural land fall under agricultural income?
12 April 2014
Sale value of the agricultural land is not the Agricultural income.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
12 April 2014
Total sale less purchase value of all the lands will be income from business? What if the land is held for more than 36 months? Will that attract capital gain?
12 April 2014
It depending on the nature of treatment by the assessee.
If the lands are put as stock in trade then the sale value-purchase value shall be income from business and in this case irrespective on the holding period of the land in any number of years you hold then it shall be consider as business and not attracts capital gain.
OM SAI SRI SAI JAI JAI SAI
If the lands are put as stock in trade then the sale value-purchase value shall be income from business and in this case irrespective on the holding period of the land in any number of years you hold then it shall be consider as business and not attracts capital gain.
OM SAI SRI SAI JAI JAI SAI
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02 October 2021
Being income under PGBP, all the profits, after deduction of all the expenses to earn the income, the net will be taxable as business income.
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