Land sold by doing plotting

for financial year 18-19 a person has sold Land by doing plotting in his agricultural land but the land use has not changed

can he show this it as stock in trade and file is return under section 44ad

by taking the total value of land showed as turnover and profit more than 8%
Replies (4)
Quick Summary
This discussion explores the tax implications of selling agricultural land after plotting it. The core question is whether this activity qualifies as 'stock in trade' under Section 44AD, allowing for profit calculation based on turnover, or if it should be treated as a capital asset, subject to capital gains tax. The difference in valuation between agricultural use and commercial plotting is highlighted, with plotting generally yielding a significantly higher sale consideration.

If it is a rural agricultural land, then better to show as capital asset and consequently no capital asset.


In case of any other agricultural land, it is still better to show as capital gains income only.
The for agricultural land value adopted by authority is very less as compared to plotting because for plots commercial rates are used as such the difference is whose almost 7 x
It's good na that your agreement value is higher than stamp duty value. Not to worry at all.
No I mean to say the cost of acquisition of land was less because it was agricultural land and agricultural tale s but now I'm solding it by doing plotting so the rates applicable are are not agricultural search the sale consideration is far more

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details