Menu
Land given for development - business income or capital gains ?
one of my client had plot of land which was given to a develeoper (builder) for construction of flats and shops.
In consideration 40% of flats and shops were given to my client.
He is selling flats/shops one by one.
My question :
whether income on sale of flat would be taxable as business income or capital gains ??
Replies (2)
It seems that ur client not engaged in business of real estate ( i.e acquiring land and developing either on himself or by entering into contract with third party )
In such a case ur client giving the posession of land to builder to construct and he receives flats as consideration.
On giving posession it is transfer of capital asset . So accordingly calculate capital gains.
First understand the nature of transaction of that client .whether he has been into that business or just its a capital asset.
Recent Threads
- ITC cannot be denied to Bona Fide Buyers for Suppl
- Unused ITC for Hotel after GST Change
- CA FINAL SPOM
- 44ad presumption of tax
- Friendly loan to blood relative?
- Tds penalty for in operative pans
- TDS on Property- 26QB filing Doubt
- HSN code for Exempted supplies
- HSN Summary of Outward Supplies (Sales and Advance
- Joint Venture address proof under GST
Related Threads
CAclubindia
