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Assessment of builders' profits.
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6.—(1) References in sub-paragraph (ii) of paragraph (a) of Clause 1 of Schedule D of the Income Tax Act, 1918, to annual profits or gains arising or accruing from any trade shall include profits or gains arising or accruing to any person from any building operation carried on by him or from the sale or the demise (otherwise than for a term not exceeding ten years without a fine) of any lands or hereditaments acquired by him either with the intention of selling or so demising them or with a view to their development by the erection of buildings or the reconstruction of buildings or any other building operation.
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(2) The following Rule shall be added to the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, that is to say:—
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“18. In the computation of profits assessable under this Schedule and arising from the demise of any lands or hereditaments there shall be included in such profits—
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(a) any fine, premium, or other money, by whatever name called, included in the consideration for such demise, and
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(b) the capitalised value of the rent reserved on such demise.”
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