CA Dauzi Pathan Imran Khan (Chartered Accountant in Practise) (1678 Points)
19 October 2010A Chartered Accountant showing her 5 yrs baby, the movie of Cindrella. After All movie is over, the 5 year child asked her father
" PAPA..!!! When the Pumpkin turned into Gold....
Whether we treat that gold as Capital gain or Income from other Sources??"
Friends....What will we do??? How should we treat the gold???
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 20 October 2010
i think its income from other source. ( not sure)
CA Dauzi Pathan Imran Khan
(Chartered Accountant in Practise)
(1678 Points)
Replied 22 October 2010
How yaar???
Justify ur answer.....
After all U r in CA course..U have to make in depth analasys..:-)
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 23 October 2010
If the same is done as a continous activity, it is to be treated as Business Income. Raw material (Pumkin) is converted into Final Product (Gold). However, if it is a one time activity, we can treat it as IFOS. It cannot be taxed as CG, coz, the gold sold was not purchased by him. It is just a gold that has been converted from pumkin. So, it is to be taxed as Business Income
CA Dauzi Pathan Imran Khan
(Chartered Accountant in Practise)
(1678 Points)
Replied 27 October 2010
Thanks for ur response...Mr.Narayanan
CAclubindia
