09 February 2012
I have been doing business related to construction of apartments and those completed units put for sale as and when construction completed.These units are constructing with my own funds and in my own land.At the end of FY some units were sold out and till remaining units held for sale.Now the question is whether these remaining units are treated as property held in stock- in-trade or not? if those units were treated as property held in stock-in-trade under which head taxable? How the taxable income is calculated from these units?
09 February 2012
Since you have mentioned that you are engaged in the business of construction and sale of flats .. and also that the flats are shown as stock in trade.. the rental income earned from such unsold flats shall be BUSINESS income..
CAclubindia
