Land purchase and sold (capital gains0

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Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2015 Experts Please reply :-
I am engage in a business of Land Purchase and Sale, (LAND TRADER) under which I use to purchase land from various persons and sold them as per consideration amount keeping my profit, some land are sold after period of 3 years and some are sold on that particular year.
My question is that under such circumstances does Capital Gain Provision arises or not because as far as the Land sale and purchase is concerned it covers CAPITAL GAIN, but my issue is different because the profit earned by me is under HEAD "INCOME FROM BUSINESS & PROFESSION".
So, please give your view in this regard, is the income is covered under Capital Gain or not.
Thank You.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

23 March 2015 yes in ur case since u buy and sell properties they will not be capital gain as these are stock for you as its ur business and hence it will be computed as income as income from business or profession

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2015 So, it means that if I have sold the land after 4 or 5 years it will not covered Capital Gains. It will be treated as Business Income.
Can I file these income in ITR-4S. or in ITR-4.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

23 March 2015 yes since they are not capital assets in your case and u need to file itr4

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2015 Dear Mr. Tushar,
You have advise me that land is not capital assets in my case, but under which section it will be treated as business income, not capital gains because some lands are purchase and sold after 5 years also, hence that land will treated as capital assets or not.
thank you.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

26 March 2015 for land traders as u refer urself i had said above that it is not a capital asset for you and hence properties in business is stock in trade..and it doesnt make any difference whether such business assets are held for 5 years or less..its business income only

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)