LTCG
This query is : Resolved
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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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.
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.
20 September 2016
ok thank you
21 September 2016
you are most welcome.
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