Hi eminents,
my co deals in land development i.e. purchasing land from farmers and selling plots to customers after some development viz road,plantation etc ...the difference/profit is taxable @ 25.17% corporate tax....as far i have little knowledge of tax saving...investing profit in reals estate facilitates tax completely. i want to have precise information with section/notification of the same along with practical approach. kindly let me know accordingly.
regards
vikas
For a real estate development company selling plotted land, the earnings are classified as Business Profit (PGBP) and taxable at the applicable corporate tax rate (25.17% under the concessional regime under Section 115BAA). Reinvesting profits back into real estate does not grant tax exemption under Indian tax laws, as reinvestment benefits apply only to Capital Gains. Tax exposure can be legitimately minimized by fully accounting for all development and borrowing costs, optimizing revenue timing, and claiming all statutory business deductions and depreciation.
thanx sir. the co holds bought lands for 2-3 years thereafter sells into plots....isn't it Capital Gain
Chirag P Shah & Co. Chartered Accountant
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