13 June 2014
Dear Sir, If a builder purchased a land and held it as stock in trade more than 3 years and sold it. Please explain the tax implication on this.
13 June 2014
In the year in which Asset is transfer to the business, Capital Gain would be taxable. Indexation would be applied Cost of Acquisition X index cost of year in which asset is transfer to business / index cost of year of Acquisition.
In the year of sale of asset, it would be leviable as Profit & gains in Business and Profession.
CAclubindia
