Capital gain in case of wip
This query is : Resolved
29 January 2016
Respected Sir,
I Purchase Shop Few Years Ago & Treated Such Shop As WIP, But After Few Year I Sell The Shop As It Is Without In Redevelopment Than I Should Have To Pay Capital Gain In Such Case Or Not????
I Purchase Shop Few Years Ago & Treated Such Shop As WIP, But After Few Year I Sell The Shop As It Is Without In Redevelopment Than I Should Have To Pay Capital Gain In Such Case Or Not????
29 January 2016
Yes, you have treated the shop as stock in trade u/s 45(2) of the Income Tax Act. It attracts capital gain on such treatment itself. The taxability of capital gain arises, when you actually sell the property.
Hence, in your case, both capital gains / (loss) and business income / (loss) needs to be computed in the year of sale of shop.
Hence, in your case, both capital gains / (loss) and business income / (loss) needs to be computed in the year of sale of shop.
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