House Property Income or Business Income or Capital Gains..
This query is : Resolved
06 August 2010
Dear Experts,
If an Assessee purchases land and holds himself for more than 3 years or less than 3 years and sells it as
(1) Plots
(2) himself builds building and let
it out to tenants.
(3) Keeps certain land as stock in trade.
In the above case whether such assessee income has to be shown as Business Income or Capital Gain.
It is very urgent sir.
Please provide me or give the link for the relevant section or case law or notification because i have to satisfy my senior whatever answer i give.
With regards,
Rajesh
If an Assessee purchases land and holds himself for more than 3 years or less than 3 years and sells it as
(1) Plots
(2) himself builds building and let
it out to tenants.
(3) Keeps certain land as stock in trade.
In the above case whether such assessee income has to be shown as Business Income or Capital Gain.
It is very urgent sir.
Please provide me or give the link for the relevant section or case law or notification because i have to satisfy my senior whatever answer i give.
With regards,
Rajesh
06 August 2010
1. IF SALES AS IT PLOT, THEN IT IS LONG TERM CAPITAL GAINL
2. IF BUILDS IT AND RENTED OUT, THEN IT WILL BE HOUSE PROPERTY INCOME,
3. IN CASE OF CONVERSION OF LAND INTO STOCK IN TRADE , Under this Sub-section (2) of Section 45, it is clear that capital gain shall be charged in the previous year in which such stock-in-trade which is known to be so only after conversion, is sold or otherwise transferred
2. IF BUILDS IT AND RENTED OUT, THEN IT WILL BE HOUSE PROPERTY INCOME,
3. IN CASE OF CONVERSION OF LAND INTO STOCK IN TRADE , Under this Sub-section (2) of Section 45, it is clear that capital gain shall be charged in the previous year in which such stock-in-trade which is known to be so only after conversion, is sold or otherwise transferred
Message likes :
1 times
06 August 2010
IN CASE 3 : PLEASE CLICK ON BELWO LINK FOR THE CASE ON SAME SITUATION.
https://www.taxmann.com/TaxmannFlashes/flashbn11-6-10_2.htm
https://www.taxmann.com/TaxmannFlashes/flashbn11-6-10_2.htm
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
