Tax implication on sale of land

Save Share

This query is : Resolved

MEHER NARESH (Querist)

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

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

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 .
.

Message likes : 1 times

MEHER NARESH

MEHER NARESH (Querist)

15 January 2012 thanku very much

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now