In Case Of Real Estate Business Company if Company Sells Agricultural Land And Also Purchase Agricultural Land As a Normal Business Activity.... Then What Is the Tax Liability For This Company & Is Any Exemption Available For Above Transactions......?
03 June 2012
The profit arising from such a normal business activity is treated as Business Income and expenditure if any incurred is allowable like other businesses. The Net Income is taxable under the head PGBP..i.e. Business Income. . There is no special exemption available to such companies. .
03 June 2012
Since this is a dealing in agricultural land, the profit shall be taxed as income from business. But, if there is any income from agricultural operation from this land, then the profit should be classified as Agricultural Income and Exempt from Tax.
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