Real estate business by a partnership firm where both of the partners are SC/ST

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This discussion explores the feasibility of a real estate business partnership involving SC/ST individuals. The core questions revolve around forming a partnership (even with a spouse), the necessity of permissions to sell to general category buyers, relevant legal provisions, and how profits would be taxed under business income. While there are generally no restrictions on SC/ST individuals buying or selling land, specific land restrictions or the need for collector permission (NOC) might apply, and forming a partnership may not bypass these requirements.

Nidhi Agrawal

Nidhi Agrawal (Querist)

02 April 2025 I am a SC, want to buy a land, devlop/build house and sell to a general category buyer. If I do that in my name it will involve prior permission. My questions are:-
1. Can I form a partnership with my wife and do the same?
2. Will it involve the permission to sell to a general category person?
3. What are the legal provision I have to look into before the same?
4. How the gain will be taxed i.e. in which head it will come under?
5. If it is taxed under the head business, then is there iny time limit to selll the house, as there may be a case where selling might take time?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 April 2025 There in no restriction over an individual if he is SC/or ST or general category to buy any land & sell HP, unless the land has any specific restriction. If so, the rule will apply to all the persons developing the land.

Nidhi Agrawal

Nidhi Agrawal (Querist)

02 April 2025 I know there is no restriction, but it requires permission from the collector.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 April 2025 That should be for the land NOC....
Check the conditions of land for its NA into residential zone.
Here converting to partnership firm will not solve the issue.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 September 2025 Good luck..

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