My uncle owns agricultural land next to a Railway Station. He has been growing crops on the same for more than 2 years. The nearest municipality is 2.5 kms away (aerially). Population of the municipality is around 30,000 - 40,000. The railway station came up 5 years ago. My uncle now wants to sell his land as small plots of 500, 1000 and 2000 sq ft which may be used for housing. However, plots will be sold by my uncle without applying for Land Use Change (without diversion). He expects buyers to apply for the Land Use Change. How will my uncle be taxed on such sale transactions ? Please provide the rationale as well. Thank you.
CAclubindia
