Durafon (P) Ltd., engaged in steel industry, acquired a vacant piece of land on 15th May, 2016. The company sold the said land in December, 2018. The profit earned on sale of vacant land of ₹10 lakh shall be taxable as:

CS Executive · Tax Laws and Practice · PYQS · June 2019
Durafon (P) Ltd., engaged in steel industry, acquired a vacant piece of land on 15th May, 2016. The company sold the said land in December, 2018. The profit earned on sale of vacant land of ₹10 lakh shall be taxable as:
(A) Business income
(B) Income from other sources
(C) Short term capital gain
(D) Long term capital gain

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Income Tax Act, 1961

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