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Question ID : 41144

Business Income or not ?

A person is dealing in Sale & purchase of rural Agriculture Land. Suppose in a Year, he Purchase 4 times and sale it. Is it to be shown as business income or no where. ??

Posted by Harish Kumar on Sep 13, 2021

Filed Under DIRECT TAXES

Answer ID : 81321

Rural agriculture land is not capital asset. Therefore sale of such land is not taxable. If the land is hold as stock in trade and the transaction of purchase and sale of such land is done regularly and it is in the course of business, it is business income, otherwise not. Regularly and purpose of the transaction is deciding factor not the volume of transaction.

Posted by CA. chunauti dholakia on Sep 13, 2021
Answer ID : 81322

if he is regular trading with profit motive then it should be his business income . otherwise various arguments to treat as capital receipts after go through other paramenters

Posted by SANDEEP KAPOOR on Sep 13, 2021