Capital gain
This query is : Resolved
05 January 2008
An individual owns 30 cents of agriculturakl land situated outside notified area-but he does not have proof to show that the land is agricultural - at the same time he has added agricultural income for rate purposes for the last 5 or 6 years
Now the question is whether he will have to pay tax if he transfers possession of this land to a builder for construction under a joint development agreement -
What is your answer to the above?
Alternatively if he converts the property into stock in trade and offers it for a Joint Development , he can delay payment of tax without interest till he sells it in full or in part . If he selle only a part of this he'll pay only proportionate tax - otherwise full tax-in this case he will be required to pay tax on business income as well in the year of sale.
Which alternative is better for him ? Or is there any better tax planning?
Now the question is whether he will have to pay tax if he transfers possession of this land to a builder for construction under a joint development agreement -
What is your answer to the above?
Alternatively if he converts the property into stock in trade and offers it for a Joint Development , he can delay payment of tax without interest till he sells it in full or in part . If he selle only a part of this he'll pay only proportionate tax - otherwise full tax-in this case he will be required to pay tax on business income as well in the year of sale.
Which alternative is better for him ? Or is there any better tax planning?
07 January 2008
IN LAW LEGAL FACTS THAT IS THE FACTS WHICH CAN BE PROVED IS ONLY RECOGNISED.
SHOWING AGRICULTURAL INCOME FROM A NON AGRICULTURAL PROPERTY DOES NOT MAKE A NON AGRICULATURAL PROPERTY AS AGRICULTURAL PROPERTY
SHOWING AGRICULTURAL INCOME FROM A NON AGRICULTURAL PROPERTY DOES NOT MAKE A NON AGRICULATURAL PROPERTY AS AGRICULTURAL PROPERTY
08 January 2008
dear sir,
Actually the property is agricultural and there were 12 yielding coconut trees and 3 yielding mango trees and others. But he did not care to obtain a certificate from the local authority showing that this land had such fruit bearing trees at the time of transfer and agricultural operations were carried on by the owner till that time. Now the only evidence is that the land owner had shown agricultural income during the past years.
Please look at this problem with this background.
Actually the property is agricultural and there were 12 yielding coconut trees and 3 yielding mango trees and others. But he did not care to obtain a certificate from the local authority showing that this land had such fruit bearing trees at the time of transfer and agricultural operations were carried on by the owner till that time. Now the only evidence is that the land owner had shown agricultural income during the past years.
Please look at this problem with this background.
08 January 2008
I expect your valuable opinions on the above query as modified
08 January 2008
2
09 January 2008
3
10 January 2008
i have not yet received any reply
Guest
Guest
(Expert)
16 January 2011
Please clarify whether your land is not recorded as revenue land ? Please check with Patwari / revenue department, your land may be revenue land.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- ASMT-10 received from A O
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
