obeid (learner) (292 Points)
06 August 2010
x and y purchased land in their joint name and given contract for construction of 6 flats. 3 flats were completed and sold during financial the year 2009-10 and three flats will be completed during 10-11.
Can X and Y show their Income tax as partnership Income from business for Fin.yr09-10 & 10-11 ?
Dharmendra Jha
(Asst. Manager Finance)
(100 Points)
Replied 06 August 2010
Dear someone,
X and y have to declare his income as capital gane seperately if both has has purchase this land in the specified ratio for which they sold. or the person is liable for capital gain income who is the position holder of this land and the same solded land should be declae in a.y. 2010-11.
Thanks.
obeid
(learner)
(292 Points)
Replied 06 August 2010
Thanks
They have entered into a partnership agreement after the purchase of land and agreed to share the profit and loss arising from the business and taken the share contributed for purchase of land as their capital and plan to do same business in preceding years also. please explain why is this not possible?
Member
(Management)
(325 Points)
Replied 07 August 2010
| Originally posted by : obeid | ||
 |
Thanks They have entered into a partnership agreement after the purchase of land and agreed to share the profit and loss arising from the business and taken the share contributed for purchase of land as their capital and plan to do same business in preceding years also. please explain why is this not possible? |
 |
Probably you mean "succeeding years"? It then becomes their business and will be charged as business income. LTCG is for one off transactions.
obeid
(learner)
(292 Points)
Replied 08 August 2010
Thanks sir,
1) Is it possible to avoid LTCG for this transaction as well and show as business income?
2) can the property to be purchased in firms name only or in joint names of partners?
Nilesh Prajapati
(Taxconsltant)
(21 Points)
Replied 08 August 2010
IF EMPLOYER GIVE LOAN TO EMPLOYEE FOR HOUSE . THEN WHAT WILL THE EFFECTS ? WILL TDS CUT ON LOAN ? WILL TDS CUT ON INTEREST ON LOAN ? WILL IS IT PERQUISITES ?
Member
(Management)
(325 Points)
Replied 08 August 2010
Since you are going to do this on a regular basis, you can show it as business income.
A firm cannot hold property since it is not a legal entity. All transactions will be in the name of the partners acting on behalf of the firm. Once the firm is constituted, it is better to transact in the name of the firm, since the partners cannot year after year put their individual properties in the firm.
CAclubindia
