Sale of ancestral land afer converting into building
This query is : Resolved
01 May 2014
Hellozz..
One of my friend having his Ancestral land, and now on land he constructed a Residential Building.
And sale the Flats of Building..
Then What about its Taxability???
And Construction is not business of him, Thus I think Land converted into Building can't transfered into STOCK IN TRADE.
Whethere it is treated as Capital Gain???
Plz Guide me about this..Soon as possible
Thanks in advance..
One of my friend having his Ancestral land, and now on land he constructed a Residential Building.
And sale the Flats of Building..
Then What about its Taxability???
And Construction is not business of him, Thus I think Land converted into Building can't transfered into STOCK IN TRADE.
Whethere it is treated as Capital Gain???
Plz Guide me about this..Soon as possible
Thanks in advance..
01 May 2014
The query asked is not so simple as it looks on its face.
.
You may refer the following link :
.
https://www.indiankanoon.org/doc/152978292/
.
You may refer the following link :
.
https://www.indiankanoon.org/doc/152978292/
01 May 2014
Better have advice of an expert to avoid future litigation.
02 May 2014
hello sir,
As you Replied that it should be tretaed as business Income...
But as per my view He is not a Real Estate Developer and Reconstructing his own property and selling it won't attract business income..
Is it correct??????
plz Guide me....abt that..
As you Replied that it should be tretaed as business Income...
But as per my view He is not a Real Estate Developer and Reconstructing his own property and selling it won't attract business income..
Is it correct??????
plz Guide me....abt that..
02 May 2014
If you refer the link then you would realize that lot of controversies can arise and until the matter is analyzed in-depth; it is tough to give any opinion thereon.
.
.
From the link you will come to know that AO's opinion is always different than the assessee because he generally remains REVENUE minded.
.
.
In my opinion, your case falls under A VENTURE IN NATURE OF TRADE.
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However; if a single house is constructed and then sold; the case may be different than the existing case where so many flats have been constructed.
.
.
.
From the link you will come to know that AO's opinion is always different than the assessee because he generally remains REVENUE minded.
.
.
In my opinion, your case falls under A VENTURE IN NATURE OF TRADE.
.
However; if a single house is constructed and then sold; the case may be different than the existing case where so many flats have been constructed.
.
02 May 2014
yop...sir....
You are right about that and I read that link given by you...
thank u very much....sir
You are right about that and I read that link given by you...
thank u very much....sir
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