ask about the taxability of person

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2011 One of the my client purchased land, taken development agreement & POA in three individual names jointly.
All permissions are appoerved by the authorities on the 3 joint individual names.
Whether i refere to my client to form partnership firm or AOP, For taxation & book keeping purpose which one is suitable as per income tax law.
my query is all the permissions are in joint individual name, what is the effect if i suggest for to form a partnership firm or AOP.
thanx

chetan soni

chetan soni (Expert)
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11 February 2011 You should go for partnership. This will allow you to get the total profit & loss of development business.

You can claim claim the deduction u./s 80 (confirm the section for project for housing development).