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

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