Capital gains

work is worship (Service) (2728 Points)

17 July 2013  

This is a querry on behalf of my friend.

He had purchased a land in the year 2000 and in 2008 he along with his friend and relative started a building construction - real estate  business, as a partnership company with equal profits. He used his own land and his relative land and built residentail buildings..

The question is what is the capital gains treatment once the builildng/ flats are sold.

The FMV as on date of puchase or conversion will be taken.

Will the LTCG be income of individual or Partnership firm and who will be liable for tax.