Capital gains on conversion of land as stock.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 December 2011
Dear Experts one my client(Individual) who is having the land in his name, has developed that land and sub divided the same and sold it in no. of plots, now, I trf. this land to the business of real estate, the prop. is the same assessee, will there any capital gains on this trf, of land?
Pl clarify
Pl clarify
18 December 2011
On conversion of capital asset into stock in trade it will amount to transfer and CG needs to be calculated.
The sale consideration will be the FMV vlaue of the prperty and indexed cost acq needs to be deducted to arrive at the CG.
Again when the converted stock in trade will be sold then any income will be taxable under the head Business and profession.(The difference between the Selling price and the sale proceeds)
The sale consideration will be the FMV vlaue of the prperty and indexed cost acq needs to be deducted to arrive at the CG.
Again when the converted stock in trade will be sold then any income will be taxable under the head Business and profession.(The difference between the Selling price and the sale proceeds)
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