It is capital gain or business income

Sachin

Capital Gain :-    100 % . Since land ownership is with the fime  by way of  register in the name of its two partner.   It is taxable yearwise when there is conveyance deed made for sale of property developed on the land.

Business Income :-  25% . It is business income since it is share  received for Joint Venutre made for development of property.

Regarding  Expenses for land leveing etc. it can be treated as cost of improvement for computing capital gain.

For loss set off . 25 % share of  income from Joint Venture is considered.

Sir

All payments are made from partnership firm

so till it will be counted as personal asset ? we already calculated same as business asset due to payment from partnership firm

so how it can be 100% capital gain ?

only 25% shares received can be counted as capital gain, 

but main problem is that as partnership firm is having nature of business as builders & developers

it can be treated as stock of firm ? 

and if its stock of firm than income will be business income only

right ?

please help

Sachin.

My first reply is wittarget='_blank' rel='nofollow' hreference to your first post.

now for your second post and  for fist question:-   

In this case nature of business is relevant . If it is business other than builders & developers than  still there is capital as per my first reply.

see ,payment are made from the firm. It becomes property of firm .  It is treated as  business assets when it is used for its business not oly when firm purchase any property .   Here , It is land  for which firm has entered into joint venure for devlopment  on property.

and for second question:- if nature of business is builders and developers than  I think there is no question of capital gain. there is only business income.