01 May 2014
Hello, If someone has ancestral land which he has costructed as residential building and sold it then What is the treatment in income tax for filling of return? Is it treat as capital gain?? Or treat as contractor?? Or any???
02 May 2014
assuming you are doing everything on your own, the proportion of sale consideration that can be attributed to sale of land will be taxed as long term capital gains arising out sale of land and the remaining consideration shall be taxed as short term/long term gains (depending on the holding period after construction of the building) as gains from sale of residential houses.
02 May 2014
Means we have treat it as LTCG/STCG. But wht happen in this situation, after construction of building, he has sold some flats in current year and some no. of flats sold in next year.. Now if AO can ask it as stk-in-trade i.e. it becomes regular activity of real estate?
CAclubindia
