House Property Income or Business Income or Capital Gains..
This query is : Resolved
06 August 2010
Dear Experts,
If an Assessee purchases land and holds himself for more than 3 years or less than 3 years and sells it as
(1) Plots
(2) himself builds building and let
it out to tenants.
(3) Keeps certain land as stock in trade.
In the above case whether such assessee income has to be shown as Business Income or Capital Gain.
It is very urgent sir.
Please provide me or give the link for the relevant section or case law or notification because i have to satisfy my senior whatever answer i give.
With regards,
Rajesh
If an Assessee purchases land and holds himself for more than 3 years or less than 3 years and sells it as
(1) Plots
(2) himself builds building and let
it out to tenants.
(3) Keeps certain land as stock in trade.
In the above case whether such assessee income has to be shown as Business Income or Capital Gain.
It is very urgent sir.
Please provide me or give the link for the relevant section or case law or notification because i have to satisfy my senior whatever answer i give.
With regards,
Rajesh
06 August 2010
1. IF SALES AS IT PLOT, THEN IT IS LONG TERM CAPITAL GAINL
2. IF BUILDS IT AND RENTED OUT, THEN IT WILL BE HOUSE PROPERTY INCOME,
3. IN CASE OF CONVERSION OF LAND INTO STOCK IN TRADE , Under this Sub-section (2) of Section 45, it is clear that capital gain shall be charged in the previous year in which such stock-in-trade which is known to be so only after conversion, is sold or otherwise transferred
2. IF BUILDS IT AND RENTED OUT, THEN IT WILL BE HOUSE PROPERTY INCOME,
3. IN CASE OF CONVERSION OF LAND INTO STOCK IN TRADE , Under this Sub-section (2) of Section 45, it is clear that capital gain shall be charged in the previous year in which such stock-in-trade which is known to be so only after conversion, is sold or otherwise transferred
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06 August 2010
IN CASE 3 : PLEASE CLICK ON BELWO LINK FOR THE CASE ON SAME SITUATION.
http://www.taxmann.com/TaxmannFlashes/flashbn11-6-10_2.htm
http://www.taxmann.com/TaxmannFlashes/flashbn11-6-10_2.htm
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