09 February 2013
A PERSON HAS AGRICULTURE LAND CONVERTED TO NA PLOT HE WANTS TO CONSTRUCT RESIDENTIAL PROPERTY WHAT WILL BE EFFECT IN INCOME TAX IF TAKE LAND IN PROFIT & LOSS A/C WHETHER CAPITAL GAIN WILL ARISE AND WHAT WILL BE THE EFFECT IF HE DO NOT TAKE LAND IN PROFIT LOSS PLEASE ADVICE
if the assessee uses the construct the residential property on the agricultural land then, it does not mean that there is a "Transfer" as per the Income tax act, therefore there is not capital gains will arise. There is no question arise of taking land in profit and loss account.
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