Stock converted into fix assets
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 April 2012
dear sir,
we are engage in real-estate business.
we are earning rent income form a project and for the same we have paid interest also.
now we want to claim such interest u/s 24 of income tax act, 1961 by showing rent income as house property income by converting the project into fix assets.
can we do it and any capital gain liability arise form the above transaction.
we are engage in real-estate business.
we are earning rent income form a project and for the same we have paid interest also.
now we want to claim such interest u/s 24 of income tax act, 1961 by showing rent income as house property income by converting the project into fix assets.
can we do it and any capital gain liability arise form the above transaction.
16 April 2012
If you are in real estate business and showing property as stock in trade then also the income from rent from such property is chargeable to tax under house property income and not from business income.
If you are really converting your stock in trade in fixed assets, then there is no problem the cost of asset will be the cost of such stock.
If you are really converting your stock in trade in fixed assets, then there is no problem the cost of asset will be the cost of such stock.
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 April 2012
than can we claim the interest paid amount form house property income or not.
16 April 2012
Yes, Of courese you can very well claim the interest even if it is held in stock in trade.
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