Land given for development - business income or capital gains ?
ankit (student) (127 Points)
11 March 2017ankit (student) (127 Points)
11 March 2017
MANOJ A
(Passion)
(52 Points)
Replied 25 March 2017
It seems that ur client not engaged in business of real estate ( i.e acquiring land and developing either on himself or by entering into contract with third party )
In such a case ur client giving the posession of land to builder to construct and he receives flats as consideration.
On giving posession it is transfer of capital asset . So accordingly calculate capital gains.
First understand the nature of transaction of that client .whether he has been into that business or just its a capital asset.
Certification Course on GSTR-3B Reconciliation with GSTR-2B through Chat GPT