hii all,
i would like to state a following case where the land is owned by father for resi. purpose bt later on same is developed
by his son with some commercial shops and residential flats and same is sold by the father commercially
other facts are all the exp. of development is incurred by the son having loans and advances from father
my queries are:
1.How can i account for the money received to son from his father where it can term as advances for development of land and later on at the time of sales by sale deed son will account for his commission income.
2. whether the commission income paid to son is allowable to father or not?
3. The same is case of conversion of capital asset into stock in trade ? so father will be taxed in both ways as capital gain and business income but whether he would get deduction of whatever he pays to his son for development from his business income.??
reply soon with details
thanks
for any further clarification pls ask for the same.
CAclubindia
