Short term capital gain
HARISH KUMAR
(Querist) 26 January 2013
This query is : Resolved
one of my client acquired Property at Rs.18 lacs and sold it at Rs.9 lacs. He sold Malwa .i.e Iron , Bricks etc. worth Rs.10 lacs.He can substantiate it by taking receipts from various persons and Kapadia. In my opinion ,A.O Can make valuation of property from the valuer and check the rates. In that case , No Cash of differential price will be allowed. Suggest remedy also.
ajay sethi
(Expert) 27 January 2013
raise your tax queries in CA club India .com
H.M.Patnaik
(Expert) 27 January 2013
What is the normal business of your client? From the limited facts, it is not possible to say that whether thr Capital gain is short term or long term ? However, as you have mentioned in your query it is a short term gain , the same has to be dealt under that head while determining your taxable income and return filed accordingly. Regarding the cash receipts of the saleable items derived in course of dismantling of civil construction( I suppose),you can refr to relevant provisions of the Income tax law
regarding the ceiling on cash transactions in course of business.
