Sale of land taxable in which head

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Pooja (Querist)
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30 January 2014 Partnership firm formed for purchase of lands develop it and sale of properties. but in reality only in firm only single land purchased and partners developed it but in mean time they got demand for said land. they sold land and underdeveloped property on it. Now under which head it should get taxable and how to treat carried forward interest loss on partners capital and salary paid to partners in firm????

CA Hardik Bunha

CA Hardik Bunha (Expert)
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30 January 2014 it is your business income. as lands not registered on the name of firm.

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Pooja

Pooja (Querist)
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30 January 2014 Partnership firm formed for single land only. and that land registered under firms name. Will you please guide how interest and salary from firm will be treated in books??.. If we consider sale of land under capital gain.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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30 January 2014 No any kind of deduction for remuneration and interest to paetners.

If u r computing capital gain then this will be your slump sale

Pooja

Pooja (Querist)
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30 January 2014 In the financial year 2009-10 one partnership firm formed to for purchase of land. Land registered under firms name. partnership firm showed that land in books as fixed asset. In 09-10, 10-11, 11-12, 12-13 ITR 4 filed showing interest loss on partners capital. In F.Y 13-14 started constructing warehouse on said land. But while constructing it got demand from market for land so firm decided to sale out that land and Shed on it to Party. Firm paid salary to partners from gain of said land. and There is interest income to the firm due to excess withdrawal of capital by partners. How salary paid to partners and Interest income will be treated? is it treated under head PGBP?.. If sale of land and shed thereon treated as capital gain? can we take set off of carry forward interest loss from firm?? asked in detail now...

CA Hardik Bunha

CA Hardik Bunha (Expert)
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30 January 2014 1st of all u have filed wrong return. For firm itr 5 applicable.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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30 January 2014 R u on what's app

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