Income classification under which head
This query is : Resolved
23 July 2011
If an assessee is constructing residential property (Flats) and intends to sell them after construction as a one time activity only,the income or loss from such activity would be taxable under which head? Income From Business & Profession OR Income From Capital Gains?
23 July 2011
my view ,If it is one time activity and it will be covered under sale of capital asset under Income from capital gains
Message likes :
1 times
24 July 2011
It is a contentious matter, but my personal view is that the person should treat it as a business income. Take deductions of all the relevant expenditures from the gross receipts and show the unsold flats as closing stock.
But then if the number of flats are very small and they are sold within a year then you can claim the same as Capital gain also.
But then if the number of flats are very small and they are sold within a year then you can claim the same as Capital gain also.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS in case of Inoperative PAN under Section 192A
- How to reclaim rent paid on behalf of a registered person?
- IGST of Feb 23, Can we claim ITC now?
- Interest On TDS under section 201(1A)
- NSC interest taxability at maturity
- Form 26b submission
- TDS u/s 194IB
- Trust audit of Mumbai
- GST IMPLICATION IN CASE OF PROPRIETOR
- RCM on Commercial Godown
- How to check IT file
- Nri is having incomes in india and earning salaries in foreign and filing returns in america
- TDS Refund forgot to claim
- Difference in invoice
- PTEC CHALLAN NOT REFLECTING IN PAYMENT HISTORY
- Director's remuneration and RPT
- Amendment in GSTR1A
- GST adjudication monetary limit
- BSR AND CHALLAN SERIAL NUMBER IN CASE OF BANK ATTACHMENT ?
- CA FINAL Group-1 Completed
Trending Online Classes
CAclubindia
