Applicability of Tax Audit
This query is : Resolved
18 September 2007
Three persons in their individual capacity entered into a deal as detailed below:
One landlady entered into an agreement with husband for development of her plot of land bought at Rs. 30 lacs sharing profit 40:60.
40% wife & 60% Husband.
Husband developed the same and sold one floor to their son for Rs. 50 lacs.
Now the total project is being sold at Rs.3.00 crores.
They will get :
Wife Rs.90 lacs
Husband Rs.135 lacs
Son rs. 75 lcs
Whether they will come under Tax Audit?
One landlady entered into an agreement with husband for development of her plot of land bought at Rs. 30 lacs sharing profit 40:60.
40% wife & 60% Husband.
Husband developed the same and sold one floor to their son for Rs. 50 lacs.
Now the total project is being sold at Rs.3.00 crores.
They will get :
Wife Rs.90 lacs
Husband Rs.135 lacs
Son rs. 75 lcs
Whether they will come under Tax Audit?
18 September 2007
yes even single transaction in nature of adventure is done it is treated at business income as sec 28
18 September 2007
yes even single transaction in nature of adventure is done it is treated at business income as sec 28
18 September 2007
yes even single transaction in nature of adventure is done it is treated at business income as sec 28
18 September 2007
Hi Nitesh,
can you please support this statement with any judgements or any note
can you please support this statement with any judgements or any note
18 September 2007
Hi,
The best way is buy a old stamp paper for Rs.300 and print a partnership deed.
Then only the firm will be subject to tax audit.
Doubt : The husband and wife share it 40:60.How does son get 75 lacs.
regards
sivasankar
The best way is buy a old stamp paper for Rs.300 and print a partnership deed.
Then only the firm will be subject to tax audit.
Doubt : The husband and wife share it 40:60.How does son get 75 lacs.
regards
sivasankar
19 September 2007
A floor of the developed building was agrred to be sold to son for Rs. 50 lacs and the proportionate price for that floor is Rs. 75 lacs
Husband wife partnership income will be clubbed together?
What purpose partnership will serve?
Husband wife partnership income will be clubbed together?
What purpose partnership will serve?
19 September 2007
Hi,
Partnership will lead to the audit of the firm only.
Only the salary paid to the lady partner will be clubbed if she does not have any professional qualification.
Wife will introduce land as capital and the husband will introduce funds as capital.
Wife to pay capital gains on conversion of land as capital and firm need not pay capital gain because it will treated as business income for firm
we have done it in many cases.
Partnership will lead to the audit of the firm only.
Only the salary paid to the lady partner will be clubbed if she does not have any professional qualification.
Wife will introduce land as capital and the husband will introduce funds as capital.
Wife to pay capital gains on conversion of land as capital and firm need not pay capital gain because it will treated as business income for firm
we have done it in many cases.
20 September 2007
Hi Mr Sivasankar,
Thanks,
A bit of further clarification,
Wife bought the land in the year 2003 and the construction started in 2006. At what price the land should be transferred to the firm at which price the capital gain in the hand of wife will be taxed. Whether son can also be made partner?
A bit of elaboration will help in planning.
Thanking you again & regards
Kishan
Thanks,
A bit of further clarification,
Wife bought the land in the year 2003 and the construction started in 2006. At what price the land should be transferred to the firm at which price the capital gain in the hand of wife will be taxed. Whether son can also be made partner?
A bit of elaboration will help in planning.
Thanking you again & regards
Kishan
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