Dear chaitanya,
In case the land is held as stock-in-trade in the real-estate business by your client, it is not a capital asset within the meaning of Sec. 2 (14) of the Income Tax Act.
CA Deepesh Ruhela
(Keen to Learn)
(3271 Points)
Replied 23 December 2011
| Originally posted by : Prabeer | ||
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Dear chaitanya, In case the land is held as stock-in-trade in the real-estate business by your client, it is not a capital asset within the meaning of Sec. 2 (14) of the Income Tax Act. |
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muthulakshmi
(ca student )
(113 Points)
Replied 23 December 2011
Sec 50c applies only in case of transaction u/s 45 which is capital gains.. In this case real estate is taxable under sec 28 PGBP and hence 50C wont apply..:)
CA Vanamala Phani Kumar
(Proprietor of M/s Vanamala and Co)
(972 Points)
Replied 23 December 2011
Businees and Profession have different meanings
but income from them are treated same as per Income Tax..!!!
and there is some difference in provisions for maintaing books U/s 44AA
Rajesh Patel
(Advocate)
(38 Points)
Replied 23 December 2011
Agree of all above.It is to be trated as Business & Profession.
LALIT KUMAR GANERIWAL
(accountant)
(241 Points)
Replied 23 December 2011
ITS MAY BE DEPEND UPON NATURE OF BUSINES CANNOT SAY ITS CAPITAL GAINS OR BUSINESS INCOME ITS TOTTALY DEPENDS UPON PAST RECORDS IF HE ONCE HE TREATED AS BUSINESS GAIN THAN IN FUTURE ITS NOT TO BE TREATED AS CAPITAL GAIN
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