TREATMENT OF REAL ESTATE BUSINESS

[SUDHAKAR SIVARAMAN]

Dear professionals,

My client is a partnership firm doing real estate business by way of buying land and converting in to plots and selling the plots. My doubt is whether income from this activity is Income from Business or under capital gain. Pls suggest

AI Summary

Real estate business income: sale of developed plots by a partnership treated as business income when activity is trading.
Income from a partnership firm that buys land, converts it into plots and sells those plots is taxable as profit or gains from business/profession where the activity constitutes trading; the partnership deed should record the carrying on of real estate business to support this classification.