29 May 2013
Dear Experts my brother have purchased 30 guntas of land and he held it for 3years after that he bifurcated as sites and sold it to other parties. My query is that whether my brother attracts Capital Gain or it should be accounted as business income from real estates. Please give your expert opinion. Thanks in Advance
29 May 2013
Your brother did not held the land as stock in trade in his business. Neither he was in business of trading in such properties. Hence such land was not his stock in trade. And therefore capital gain will arise on the sale. If the sale was made in within 36 months of purchase than short term capital gain will arise otherwise long term capital gain will arise.
CAclubindia
