Dear Sir,
A farmer has agriculture land. Now he converted his Agri land in plots for selling continue.
I want to know about tax treatment.
pls guide me.
Hi Sir,
We need to be aware of following point,
-What is Agriculture Land?
The land on which any agricultural activities are carried out like cultivation, harvesting , planting etc.
-In this case, as mentioned the agri land is converted to plots,
So, as on plot no agricultural activities is carried out. Therefore it is considered as a non- agricultural land i.e, it qualifies as a capital asset and capital gain tax would be levied on such sale.
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