Capital gain tax to landowner in JDA
Dear Sir / Ma'am,
I inherited the land from my father who in turn inherited. So the cost of the land falls well before 1981. In Oct 2015, I did the Joint Development Agreement with the builder to construct the residential apartment on the land. I did not contribute in construction. All the costs of constructions were born by the builder. Till today we have not received the Certificate Of Completion. Now my question is ;
1. Do we, as landowners, have the liability to pay capital gain tax as JDA was done in 2015?
2. Will, the new law (2017) which allows the Cap. gain tax to be levied after the certificate of completion, be applicable to our case?
3. How can we calculate the full value of consideration of our ancestral property? Is the cost of construction as per the JDA ?
Answers will be highly appreciated.
Many thanks,
Aditya
Asked 5 years ago in Capital Gains Tax
Thank you Vivek, Payal and Bhadresh. I, however, see conflicting answers. As per Vivek the 2017 45 (5A) is applicable to my JDA which was signed in 2015 ( I have not sold any of the property). As I understand Payal also suggested the same. But Bhadresh suggested that in my case 2017 45 5 a is not applicable and thus my capital gain tax liabilities will start from the year 2015-16, when JDA was signed. Can anybody of you provide the confirmed answer to this critical point?
Asked 5 years ago