• Capital gains in JDA to land owner

Hi 
My father bought a land at 15000 rs, constructed a house and lived there . He made a settlement deed to me in 2016. Iam giving it to a developer as follows : a) I'm receiving a consideration of rs 70 lakhs. b) I'm also receiving a flat (out of 4 flats). Rest of the three flats the developer will sell. Please advise what's the CGT to me. FYI I've bought a flat elsewhere in August 2018 at a cost of RS.41 lakh. Thanks
Asked 5 years ago in Capital Gains Tax

The land you are going to give the builder as a part of his 3 flats is your sale part and the value of that sale consideration is that you are getting 1 flat. So sale value of that 3/4th part of land is the equal to sale value of the flat you received plus 70 lakhs and since you are selling land and buying this flat you can also claim exemption under section 54F of this same flat.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !

You will be eligible to claim the capital gain exemption u/s 54F.

Also, the consideration of Rs 70 lakh and value of flat will be considered as sales consideration for capital gain calculation.

For exact calculation, we need the further information.

Thanks & Regards,

Payal Chhajed

 

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

There are two transfer of property taken place in your case

1. From your father to you. This transfer is not regarded as transfer as per section 47 of income tax act, 1961. So if there is no transfer there is no capital gain tax liability arises.

2. From you to developer. This transfer comes under the defination of transfer given under income tax act, 1961 so it is chargable to capital gain tax. For calculating amount of capital gain tax i have to know the date on which property is purchased by your father, so give me required info. so that i can give you amount of tax you have to pay to govt. 

Avinash Tibrewal
CA, Surat
20 Answers

Not rated

Hi,

You are eligible to claim capital gain exemption u/s 54F.  Your Sales proceeds will be computed by adding the value of the flat to the 70 lakhs that the builder paid you.

 

Hope that clarifies.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Hi

Sales consideration here will be 70 lacs plus value of flat received by you.

You can claim exemption under sec 54F in order to save capital gain tax.

 

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

FMV as on 2016 should be calculated for the land with indexation and then less from sale consideration including deemed consideration of FMV of new flat. after that you will get Capital Gain and check whether the wholse sales proceeds are invested into new flat which greater than or less than Rs.41 lakh

 

Accordingly Capital Gain Tax would be calculated

Amruta Harshal Baser
CA, Jalgaon
69 Answers

4.9 on 5.0

Hi,

Please provide date of purchase of land for CGT calculation.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Hi,

- For you, sale consideration would be Rs.70 lacs plus stamp duty value of one house. Deduct total indexed cost of land and construction cost from the sale consideration to arrive at the capital gain amount.

- You can avail the benefit u/s 54 also.

thanks

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

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