Capital Gain or Business Income
This query is : Resolved
CA AJAY SONI
(Querist)
05 June 2011
My assessee acquired a land long back ago a land for Investment purpose. Now he has cut the Land into Plots and sold it. Whether Capital Gain Tax is chargeable or it is Business HEad Income. Whether it can be both i.e. upto Date of Conversion into Stock in Trade it is Capital Gain and after that Business Head.
CA PARAS BAFNA
(Expert)
05 June 2011
Q- " Whether it can be both i.e. upto Date of Conversion into Stock in Trade it is Capital Gain and after that Business Head. "
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Reply -
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The answer is yes.
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The point of time of taxability will be- the year in which the land is being sold.
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Capital Gain will also start to arise in the year of sale of land or piece of land. But the calculation of it , like indexation etc will be done in reference to the year of conversion.
*
Reply -
*
The answer is yes.
*
The point of time of taxability will be- the year in which the land is being sold.
*
Capital Gain will also start to arise in the year of sale of land or piece of land. But the calculation of it , like indexation etc will be done in reference to the year of conversion.
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