Mr. Amit owns a flat. On 5-4-2020, he decides and starts a business of dealing in sale and purchse of flats. He treats this flat as a part of stock in trade for this newly commenced business. He entered into a deal of selling this flat to one of his client on 30/.3/2021 and booked a profit of Rs5 Lakhs. Discuss the term capital asset, the relevant provision applicable, implications of above transaction, provision in his hand under the relevant head of Indian Income Tax Act.
Mr. Amit owns a flat. On 5-4-2020, he decides and starts a business of dealing in sale and purchse of flats. He treats this flat as a part of stock in trade for this newly commenced business. He entered into a deal of selling this flat to one of his client on 30/.3/2021 and booked a profit of Rs5 Lakhs. Discuss the term capital asset, the relevant provision applicable, implications of above transaction, provision in his hand under the relevant head of Indian Income Tax Act.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr. Amit owns a flat. On 5-4-2020, he decides and starts a business of dealing in sale and purchse of flats. He treats this flat as a part of stock in trade for this newly commenced business. He entered into a deal of selling this flat to one of his client on 30/.3/2021 and booked a profit of Rs5 Lakhs. Discuss the term capital asset, the relevant provision applicable, implications of above transaction, provision in his hand under the relevant head of Indian Income Tax Act.
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