Sale of Business

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Abhi123 (Querist)
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15 October 2007 A prop. concern having tax tax audit for the f.y. 2005-2006. It has transferred its prop. business on lump sum amount of Rs. 30 Lacs on July 05, 2006. Up to 13.07.2006, total sale was rs. 18 Lacs. the questions are

1. Whether the concer is liable for tax audit for f.y 2006-2007

2. under which section short term capital gain shall be calculated

3. how we calculate the capital gain on Land if there is lump sum payment was received

CMA Gul S

CMA Gul S (Expert)
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15 October 2007 Hi Abhi,

It will have the Tax audit for hte period the asset is transfered

short term capital gain is the part of you normal income and will be taxed accordingly

for capital gain of Lan you need to take help of Capital Index for the valutaion of the Land