04 June 2019
THE ASSESSEE WAS HOLDING AGRICULTURE LAND SINCE LAST 8 YEAR AND DONE AGRICULTURE ACTIVITES ON IT.
DURING F.Y. 2017-18 THE AGRICULTURE LAND IS CONVERTED INTO NON AGRI LAND AND THERAFTER PARTITIONED IT INTO 125 PLOTS. DURING THE F.Y. 2018-19 THE “A” HAS SOLD 42 PLOTS. THE QUERY IS THAT WHEATHER 1) THE PROFIT EARNED ON SALE OF PLOTS TREATED AS BUSINESS INCOME OR 2) TREATED UNDER THE HEAD OF THE CAPITAL GAIN EIGTHER SHORT TERM OR LONGTERM ?
04 June 2019
The nature of land had changed from agricultural to residential plots. Therefore, income has to be taxed under the head ‘profit and gains of business and profession’.
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