Hello @Praveen_Agarwal
Backdating the partnership deed to 01/04/2024 and updating the business purpose may help strengthen your LTCG claim, but it carries legal and compliance risks if challenged.
The Income Tax Department applies the “substance over form” principle, meaning actual transactions matter more than deed wording. Since the land was recorded as an investment asset since 2020, proper documentation is key.
If LTCG is granted, you can reinvest under Section 54F (property) or 54EC (bonds) to save tax. Instead of backdating, consider prospective changes and maintain records proving the land was not stock-in-trade to avoid reclassification as business income.