Sir, I am a developer. I am recently into this business. I construct bunglow and sell . I have a question . I am the owner of the plot and suppose if i sell bunglow for around 60lac , do i liable to pay short term capital gains, as it is completed within one year. Land cost is around 4 lac. What will be the short term capital gain i req to pay? Did i req to pay separately on land and bunglow? Land was purchased 10 years back.
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Short term capital gains
Replies (7)
What was treatment of land till such years, as investment or stock in trade?
Generlly, as a builder, all such profits derived falls under business income.
The land was taken for investment purpose .Now i decided to construct bunglows to sell.
So, the gains over the land till the date of converting it to stock in trade can be taken as long term capital gain. Any other profits from the construction and sale of bunglows can be taken as profits from business, if you intend to take so.
Sir Pls let me knw wat is thelong term capital gain m i liable to pay ? I had bought the land for rs. 4 lac in 2000 .Is indexation applicable or direct 20%?.Secondly if the bunglow is sold for 60 lac and shown as business incme , can i file it under 4s and show 8% of income ?Pls infm me. Thanks
Gain over land appreciation after indexation of cost of aquisition and improvement, will be long term gain. Building/ development business is eligible business for section 44AD.
Thanks a lot Sir
You are welcome.
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