Tax implication on sale of land
This query is : Resolved
13 January 2012
BEING FREEDOM FIGHTER MY FATHER(HE IS NO MORE) HAS ALLOTED AGREECULTURAL LAND BY GOVERNEMNT OF MAHARASHTRA WHICH AS A FAMILY WE ARE GOING TO SALE (OUTRIGHT) OR TO BE GIVEN TO DEVLOPER FOR DEVLOPMENT PLEASE GUIDE
ME REGARDING TAX IMPLICATION IF
A) WE SALE IT (OUTRIGHT)
B)IF WE GIVES IT TO DEVLOPER TO DEVLOPE IT FOR RESIDENTIAL PROJECT
ME REGARDING TAX IMPLICATION IF
A) WE SALE IT (OUTRIGHT)
B)IF WE GIVES IT TO DEVLOPER TO DEVLOPE IT FOR RESIDENTIAL PROJECT
14 January 2012
The situation of land is important to know.
If its in rural area in case A. there will be no capital gain as rural agriculture land is not an asset.
.
If you give such rural land for development, profit arising through construction activity would be taxable as business income.
.
It is important to note that land must be used for agriculture purpose by you or your parent within 2 years before sale.
.
You may also check, whether the land can be used for other purposes or can be sold or not by going through the conditions prescribed by the C. Govt. while allotting the land .
.
If its in rural area in case A. there will be no capital gain as rural agriculture land is not an asset.
.
If you give such rural land for development, profit arising through construction activity would be taxable as business income.
.
It is important to note that land must be used for agriculture purpose by you or your parent within 2 years before sale.
.
You may also check, whether the land can be used for other purposes or can be sold or not by going through the conditions prescribed by the C. Govt. while allotting the land .
.
Message likes :
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15 January 2012
thanku very much
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