Capital gain tax or stock in trade (plots)

Sir, one my client got heavy loss in this business, He borrowed loans from others and now he settled by registering plots for debt. is there any capital gain araise. kindly explain anyone please
Replies (5)

Is the loss from the same business of development?

Sir, the loss from other business of Bricks, travels & diary products. for that only he brought loans from others. Now he is not able to repay the loan. So he decided and developed his land as plots (the land received from his father by settlement deed).

Yes, capital gains and CG tax liability arises. Business loss can be carried forward.

THANK YOU SIR,

both capital gains, either long term or short term depending upon the holding period and business income or loss will come, when a capital asset is converted in to stock in trade. if it is short term capital gain then both business loss, if any from sale of plots and business loss from bricks can be set off against the short term capital gain.

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