17 April 2020
Dear sir, In proprietorship, In which account should be recorded in the profit on sale of building. Under capital account or it will treat as indirect income.
17 April 2020
It actually capital gain and not business income.
But you may include in profit and loss .
You may do adjustment while doing tax computation..
11 May 2020
Dear Sir, In Proprietorship the business income will be low and Incase i add profit on sale of building the profit will be get more.Now can i pay tax on total profit which shown in P & L account?
12 May 2020
Sir, as far as Income Tax is concerned,Mr. Eswar is rightly said. it is capital gain tax liability and if your building held by you for a period more than 36 months, then profit will be calculated as per indexation if you opt. and it is flat tax on the profit on the sale of building. if you want to reduce your tax liability, purchase another land before filing your income tax return.
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