Roshni (Student CA Final ) 14 January 2020
Mr.R has business income so the net profit on business income = Rs.52,517
Now Mr.R sold Residential house and profit on sale of fixed asset = Rs
Now he invested in purchasing new Residential House which is eligible for exemption under section 54.
so Net capital gains = Nil.
so what will be the effect in Form ITR 3 ??
1) whether it will come under Part A P & L - Other Income - Profit on sale of fixed Asset???
2) Then Schedule BP Computation of income from business or profession
Income / Receipt credited to profit and loss account considered under other heads of income chargeable u/s 115BBF 115BBG -
What will be the final effect in Form ITR 3??
CAclubindia Online Learning offers a wide variety of online classes and video lectures for various professional courses such as CA, CS, CMA, CISA as well as various certification courses on GST, Transfer Pricing, International Taxation, Excel, Tally, FM, Ind AS and more. know more
rama krishnan 15 January 2020
Unless the residential house is used for business purposes it doesn't fall under fixed asset. if at all if it's used for business purposes then there's no Ltcg instead it would be treated as stcg and no 54 deductions allowed for stcg