Taxation of partnership Firms of Real Estate Business

Dear Friends,

how is the taxation of Real Estate business of a firm Computed?

whether capital gains applicable or not?

whether it is considered as a business?

please guide me fellas..

thanx in anticipation.

 

Replies (2)

Indudhar, firm is just another assessee. All the provision of income tax will apply accordingly.

If they are holding property as investment. than their will be cap gain, otherwise PGBP.

Any rene received from property will be taxable under PGBP.

Hope it will help.

Regards

Piyush

If the nature of firms busniess is real estate the it will be treated as Income form business and not from capital gains. But the partner whos the land belongs should pay capital gain tax when such transfer( to outsider but not firm) takes place. Refer sec 45(2) and 45(3) conversion of captial asset into stock in trade.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details