Harishchandra is a property dealer and Rajnikanth is an automobile spare parts dealer.
They entered into an agreement to sell a building on 1.9.2017 for Rs90lakh. Rajnikanth made a cash down payment of Rs15lakh through a crossed check.
The building was finally sold on 1.1.2018. The stamp duty value of building on 1.1.2018 was Rs150 lakh and on 1.9.2017 was Rs140Lakh.
Please explain the tax implications in the hands of Harishchandra and Rajnikanth.
The other details are:
-Harishchandra purchased the building for Rs75 lakh on 12.7.16
-Harishchandra sold building in the course of his business.
Aug. 08, 2018