I PURCHASE A RESIDENTIAL PLOT AND CONSTRUCT HOUSE ON IT AND SALE THE ENTIRE RESIDENTIAL UNIT TO PREOSPECTIVE BUYER .I REPEAT THIS PROCESS 3-4 TIMES IN A YEAR. MY QUESTION IS
1.IS IT BUSINESS INCOME OR COVER UNDER CAPITAL GAIN.
2.IF IT IS BUSINESS INCOME THAN IT WILL BE COVERED UNDER SEC 44AD OR NOT .
3.CAN WE TREAT STCG FOR LAND RECEIPTS AND
SEC 44AD FOR CONSTRUCTION WORK RECEIPTS


Admin’s Response:

Answering your queries in order:

1. If you are running it as a business then it is business income.
2. Yes, you can take advantage of section 44AD.
3. Once you are taking it up as business, then it is to be seen in that perspective.