2 clients purchased a plot together for 70 lakhs & constructed home on it for 50 lakhs & sold it for 1.4 crores.
This is their business not capital gain transaction.
Now, their turnover is 70 lakhs each & profit & 10 lakhs each.
Can they file under 44AD or should they file under 44ADA or do they have to file ITR normally ?
Menu
Income from sale of property
Replies (9)
How the house property was sold? whether both together signed the transfer document?
Yes. in sale document both were sellers.
When a single property is sold by two owners, their business activity will be either in partnership or under AOP. How can it be indipendent bussnesses?
Yes.
But my query is whether we can use 44AD or 44ADA or not ?
Or do we have to file normally in ITR 3 by making p&l and bs ?
But my query is whether we can use 44AD or 44ADA or not ?
Or do we have to file normally in ITR 3 by making p&l and bs ?
The PAN of both individuals are different. Both proprietors cannot do independent business in one house construction, so for their joint business ITR 3 is not eligible. They have to get PAN & GST no. ( business of 1.40 Crs. require GST no) for their partnership firm for doing joint business, then question can be thought of whether the sec. 44AD is applicable over partnership firm or not.
Ok. Will see to it next time.
But for now what to do ?
But for now what to do ?
Declare it as investment and not as business. File ITR 2 with STCG over the property in both PAN independently as 50:50 ratio.
Ok.
But if they were in partnership, what should they have taken ? 44AD or normal provisions.
But if they were in partnership, what should they have taken ? 44AD or normal provisions.
Need to verify GST turnover of the firm before deciding anything further.
Firm must file GST return for the turnover of 1.40 Cr sales.
Recent Threads
- Does ca inter have negative marking
- Best CA Inter classes
- Sale of Private Limited Company
- Is PPF interest Taxabl;e in NEW tax regime??
- Income Tax filing returns
- Pan Card - Change of record
- IND AS 116 / IFRS 16: The standard that changed th
- Closure of first level step down subsidiary in Mau
- E way bill for rejected and re sold goods.
- Supporting Documents Required for GST Notice on Cr
Related Threads
CAclubindia
