Mr.X is the regd POA holder of family of a. b , c , d , he owns a Non agri.Land in the city, intends to give it to a developer Mr.LMN ,for making apartment , on 50 % basis ( 5 units out of 10 will be belonging to Mr.X-owners share ) alongwith a interest free depost of 40 lacs, How to show this 40 lacs in the coming assessment year , as income ? if yes ..then under which head ? if No.....a s he has o refund after that building becomes ready for occupation , interest so genearted will be traeted as business income or simple interest ? as well as, later on he also intend to sell those 5 units ( as land owners share) in the market, whether it will a business income or Capital gains ?
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It on refundable int. free deposit on devlelopment of land
Replies (1)
1. Deposit cannot be income, its liability.
2. Interest earned on it will be income from other sources, for that period.
3. Depending upon the development agreement, but generally capital gains.
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