Mrs. Harshita purchased a land at a cost of Rs 35 lakhs in the financial year 2003-04 and held
the same as her capital asset till 20th March, 2021.
She started her real estate business on 21st March, 2021 and converted the said land into
stock-in-trade of her business on the said date, when the fair market value of the land was Rs
210 lakhs.
She constructed 15 flats of equal size, quality and dimension. Cost of construction of each flat is
Rs 10 lakhs. Construction was completed in February, 2022. She sold 10 flats at Rs 30 lakhs per
flat in March, 2022. The remaining 5 flats were held in stock as on 31st March, 2022.
She invested Rs 50 lakhs in bonds issued by National Highways Authority of India on 31st
March, 2022 and anotherRs 50 lakhs in bonds of Rural Electrification Corporation Ltd. in April,
2022.
Compute the amount of chargeable capital gain and business income in the hands of Mrs.
Harshita arising from the above transactions for Assessment Year 2022-23 indicating clearly the
reasons for treatment for each item.