a person sales and purchase transactions 5 different agriculture lands rural area one financial. question: assess business income or capital gains tax applicable treatment in it act
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Quick Summary
This discussion explores whether income from selling agricultural land should be treated as business income or capital gains for tax purposes. Generally, frequent property dealing suggests business income, while isolated sales might be capital gains. However, rural agricultural land is often not considered a capital asset, meaning capital gains tax may not apply. The applicability of tax under the PGBP (Profits and Gains from Business or Profession) is also considered.
If assessee is dealing in selling and purchasing of properties then it is a business income but if his business is not that then it is considered to be capital gains.