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
- Tax on Deemed Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- Type of Capital Gain
- Exiting partner in partnership firm in gst portal
- F & O PROFIT REPORTING FOR AY 2026-27
- Taxability of credit in canara bank ET & T section (NRO)
- Banking Related Issue
- Reporting in TDS return
- Accounting with Claude
- IT returns for fresh job holders
- Due Date Clarity
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
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
