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Income from trading of house property

541 views 3 replies

 

hello friends gud evng,
 
   Mr.A is an individual engaged in the business of constructing the houses and selling the same.
 
in F.Y 2011-12 Mr.A constructs 10 houses and sells 5 of them and profit from sale is taxable under the business or profession Remaining 5 houses are neither let out nor sold out.
now my question whether the annual value of the Remaining 5 houses is TAXABLE or NOT?
 
if taxable under which head it is taxable? 
Replies (3)

Remaining house cannot be treated as house property becoz he is engaged in the business of selling of houses so the remaining houses should be treated as closing stock in Hand.

Of course the balance houses are closing stock in hand.

 

The annual value of property shall be charged to tax U/H INCOME FROM HOUSE PROPERTY EVEN IF 

The property is held by the assesse as stock in trade (until such stock in trade is sold)

The assesse is engaged in the b/s of letting out of property on rent/lease

 
 


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