LTCG

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Sharika Singh (Querist)
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19 September 2016 urban agricultural land (long term) purchase cost 2 crore and improvement done amounting to 10 crore and some amount additionaly incurred for advertisement for sale and sold for 15 crore. what will be treatment if treated as LTCG or stock in trade. which one is tax saving please suggest

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Amol S Joglekar

Amol S Joglekar (Expert)
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20 September 2016 Rather than tax saving, it is a question of proving 10 Cr as improvement, against a cost of 2 Cr, which please note.
It is bit difficult to prove the same to be IMPROVEMENT. If it is on one time basis, the income tax department is likely to treat it as "adventure in the nature of trade". If it is on regular basis, then LTCG is out of question.

Sharika Singh

Sharika Singh (Querist)
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20 September 2016 ok thank you

Amol S Joglekar

Amol S Joglekar (Expert)
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21 September 2016 you are most welcome.

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