Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Income under which head

353 views

Save Share

sambhaji shatawaji

44 Points Posted on 05 July 2020

There is one service provider
who provides the service and instead of consideration he receives land .After sometimes such land is sold then under which head this land is taxable.

2.If this land is taxable in the head of capital gain then what is cost of acquisition of such land.

3. this consideration received is taxable as PGBP INCOME .

Replies (2)

Quick Summary

This discussion explores the tax treatment of land received as payment for services. It clarifies that the value of the land, or the service if determinable, is taxable. The cost of acquisition is generally the value determined for the service. The income is typically taxed under Profits and Gains of Business or Profession (PGBP) if the recipient regularly deals in land; otherwise, it falls under Capital Gains.

CA Raj Doshi

Practising CA

5649 Points Posted on 06 July 2020

1. The Value of Service if it can be reasonably determined shall be the value of services rendered. If the same cannot be ascertained reasonably,the fair market value of the consideration (land)received shall be the value of service provided.

2. The cost of acquisition shall be the value determined in point 1 above

3. Yes, the value of services calculated as per point 1 shall be taxable under PGBP

Anant Jain

article clerk

36 Points Posted on 06 July 2020

I completely agreeing with Point no 1 and 2 but regarding Point no 3, it's income from PGBP if the assesse is a regularly dealing in sake and purchases of land otherwise it's a Capital Gain