Dear Querist,
If the land was originally purchased as an investment and not for trading, the profit may still be taxable as Capital Gains. However, since you are developing the land into house sites with DTCP/RERA approvals before sale, the Income Tax Department may treat the activity as a business, making the profit taxable as Business Income.
The final tax treatment depends on the facts, intention, and extent of development. Please have your documents reviewed before filing your return.
For a more detailed review of your case, you may book a phone consultation.
CA Shubham Goyal
