04 August 2011
PERIODICALLY PURCHASE AND SELL OF AGRICULTURE LANDS SITUATED IN RURAL AREA NOT USED FOR AGRICULTURE PURPOSE BY FARMER IS TAXABLE AS BUSINESS INCOME ??
04 August 2011
Farmers generally do not sell their land because they worship it. They have to cultivate the land so every time they do not keep changing the situation of the land. The availability of such land is not like plots of land in a city. Such frequent sale and purchase of agriculture land can not be an idea of a farmer. It's a businessman's mind that works in this direction. So, if a farmer changes its character from a cultivator of the land to a trader in land, land also changes its character from the agriculture land to stock in trade.
He can definitely be treated as a trader by a well informed tax authority.
CAclubindia
