https://www.taxtmi.com/forum/issue?id=2001 Capital gain treatment hinges on the land's characterization as rural agricultural land rather than the purchaser's farming history. Land previously used for agriculture remains agricultural if not put to non agricultural use; temporary lapses do not change this. The taxpayer should hold the land as a fixed asset at cost and avoid treatment as stock in trade; evidence of conversion or trading activity, or the taxpayer's property business, may prompt the Assessing Officer to treat proceeds as business income. en-us Mon, 21 Jun 2010 15:39:02 +0530 Thu, 23 Jan 2025 15:58:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=2001 Capital gain treatment hinges on the land's characterization as rural agricultural land rather than the purchaser's farming history. Land previously used for agriculture remains agricultural if not put to non agricultural use; temporary lapses do not change this. The taxpayer should hold the land as a fixed asset at cost and avoid treatment as stock in trade; evidence of conversion or trading activity, or the taxpayer's property business, may prompt the Assessing Officer to treat proceeds as business income. Discussion-Forum Income Tax Mon, 21 Jun 2010 15:39:02 +0530 https://www.taxtmi.com/forum/issue?id=2001