Land purchease

repeated qury

 you must show the source of fund (amout  used for purchase of plot)

Purchase of land for the construction is not taxable as per the income tax act, 196. it will be taxable under the head capital gain only when the property purchased is sold before or after construction. mere purchase of property is not taxable under any provision of the income tax act, 1961as there is no income generated in the transaction. as income tax is a tax on income. but the provisions of sec 194(IA) will apply for the purchase of property if the purchase value exceeds Rs. 50 lakhs. TDS has to be deducted at 1% and form 26QB and for 16B should be submitted.