1982 - My Dad bought a land for ? 10,000/- 2011 - JVA made with builder for construction of 4 flats 2013 - Allocation agreement made ( 2 flat for me and 2 flat to builder) 2017 -' Builder gave me one flat.fully completed and yet to finish other one 2018 - Cost of a Flat is 29 lacs. Please advice how much longtime capital gain I have to pay and when
Compute stamp duty value of 2 flats received by you in the year when completion certificate was issued. Deduct Indexed cost of acquisition equal to two flats.
Please provide below details.
1) Date when you received completion certificate.
2) Stamp duty value of 2 flats recd by you from builder.
3) FMV of land
As per the new amended law, capital gains from Joint development agreement shall be taxable in the year of completion. Have you received the completion certificate?
Capital Gains is calculated considering sales consideration to be the stamp duty value of the flats received.
Hi,
Ideally you were liable to pay capital gain tax at the time it's entering into the JDA.
However, assuming you have not paid it at that time, you can pay it when you receive possession. Considering the low value of land, your capital gain will be more or less equal to fair market value of the property at the time of possession. You will have to pay tax @20% on capital gain.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
You will need to compute the capital gains by subtracting the indexed cost of the 2 flats from the stamp duty value of the 2 flats. You will need to pay capital gains @20% in the year you get the occupancy certificate.
Regards,
Nikhil
Hi,
Please provide the entire cost of construction of the 4 units.
You have to pay tax, if any, arising on gains made by transfer of units to builder based on the cost of construction of entire 4 units and the cost of acquisition taking into care stamp duty valuation.
Valuation of land as on 01.04.2001 would also be required to provide correct indexation benefits.
Regards,
