Tax planning in sale of land as stock in trade.
This query is : Resolved
28 January 2014
We have a firm whose business is of construction of buildings, it has a land which is in a stock in trade. Now firm is selling the land to another builder, what is the measure to take to reduce the tax liability.
Whether firm can make any investment or do any other expenses to reduce the tax liability.
Whether firm can make any investment or do any other expenses to reduce the tax liability.
28 January 2014
if you are selling as stock in trade, the said income will get included in your business receipts. So you can buy additional land and include in stock in trade...this should take care of the tax liability part as your purchases will also increases resulting in reduction in overall tax liability.
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