Sale of Rural Agricultural land into residential plots
This query is : Open
18 January 2024
Sir One Agriculturist no other income except Agricultural income had sold his rural agricultural land into residential plots over period of 3 years to maximize his sale value . Since there is no adventure in sale (Income from Business other than this sale) is it treated as Exempted Income or to be treated as Income from business.
19 January 2024
The market value of the land on conversion date is exempt from tax.
The excess value sold after converting the land will be business income.
The excess value sold after converting the land will be business income.
02 February 2024
Sir Thanks for your valuable reply and the excess value sold can be treated as Exempted income since he is purely agriculturist and to maximize his sale of agricultural land by sold as plot only one time and he is not a business man and there is no adventure in business income . Is there any case laws supporting to this agriculturist to save tax and once again thanks
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03 February 2024
It's only business income for sale of plots.
03 February 2024
Sir thanks and please confirm Selling of own land after plotting it out in order to secure a better price is not in the nature of trade or business, more so when the land was gifted to the assessee. There is nothing on record to show that the land was purchased for the purpose of selling into plots. [CIT v Suresh Chand Goyal (2007) 209 CTR 410 (MP)]. sir, this case is suitable to my case please suggest
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