Capital gain or business income
This query is : Resolved
18 November 2014
sir
my client had purchased a plot in the year 2013-14 n entered into partnership firm xyz builders n developers with his son n his wife. He constructed n sold a residential house on the plot n sold it in the same year on his own account. Now he wants the income to be charged u/s 44 ad n not as capital gain on the ground that he runs business under the firm ad a partner. pleade guide me in this matter. thanks a lot
Amol S Joglekar
(Expert)
18 November 2014
There are 2 parts to this.
01. Conversion of PLOT of land into stock in trade shall be governed as per sec 45(2), 45(3) and 45(4)as the case may be.
02. For the sale of constructed property, he can very well go by sec 44AD.
01. Conversion of PLOT of land into stock in trade shall be governed as per sec 45(2), 45(3) and 45(4)as the case may be.
02. For the sale of constructed property, he can very well go by sec 44AD.
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