Property that was purchased an year back. Collected Rs.10 lakh More while cancelling “REGISTERED ABSOLUTE SALE DEED” in case of a business man can this amt of Rs.10. lakh can this Rs.10 lakh be treated as Business Income now? If not under which Head is it taxable?.
Regards
MKU Varma
what is your business?
Income from other sources.
Dear Mr. Kothari,
I purchased the property originally. That was cancelled when I received more. You are talking as if I am the property owner. Kindly look into the query and suggestme whether I can take it as business income. My business is real estate/property dealer.
Hi Madhavi,
It cant be capital gain because it is related to his business.
Yes, Ms. Madhavi. That's what exactly I am trying to say. I got a profit of Rs.10-00L. And mind U I am the buyer. How can I get CAPITAL GAINS, without a capital asset in my name?
I hope I can treat it as my business Income. But the crux of the issue is if this is only income I have in the full year, all my expenses spanned over the full year be allowed against this income? Is there any situation for the IT Dept. not to allow my full year expenses? Can any one examine and give valued inputs? I shall thank one and all for all the deliberations.
Mr Varma please explain in detail how the transaction took place.
Generally ,it is taxable under head Income from other sources.
Even it is for personal use or business use
Dear Mr. Mitesh Kothari,
It is a strange transaction, I know. That is why I giving U again the details. I purchased property "X" in FY2011-12 say for 50L. During FY 2012-13 that document was CANCELLED and I collected 60L thereby earning 10L.
The mute point I want to know is even if it is not considered as my business income all my year's business expenditure shall result in a LOSS. Can this loss be allowed for inter-head adjustment under the same year so that my tax out-go is not unduly hogh. Consider I have NOT filed my returns for AY 2013-14.
Thank U all
CAclubindia
