I'm Govt. servant, whether I can show sale of inherited immovable property as business instead of CG

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Komal (Querist)

17 May 2022 Dear Sir,

I am a Govt. servant & I have sold immovable properties in multiple parts which were inherited to me by my mother after her death, earlier which had been shown by her in her ITRs as a business income u/s 44AD. I want to show the sale proceeds arising out of sale of immovable properties as a business income instead of showing it as capital gain but showing it as business income instead of capital gain does not have any impact on my Govt. job & this activity is also not that kind of business which involves purchase & sale with the intention of earning profits since these immovable properties had not been purchased by me, these were inherited to me after the death of my mother and I am left with no option rather than selling it.

Kindly help me in this matter whether I can show this as business income instead of capital gain without having any impact on my Govt. job.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

17 May 2022 No you can't. The only case you can show such income as business income is that you have convert the inherited house as commercial, plotting done for such land and thereafter you will all such plots.

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