One assessee has transfered his plot of land to developers to construct , develop , sale of plats in 2011-12 . For transfer of land he has received 4 flats and remaining in cash during 2013-14 as consideration. Again he has received 2 flats in 2015-16 . Developers has constructed total 15 flats out of which 6 flats has been given to land owner. Land owner has sold 2 flats to outsiders in 2015-16 out of 4 flats initially received in 2013-14. My question is ( on the view point of land owner) 1. How to calculated Capital gain for Transfer of land to developer? Wether by taking on FMV of land during 2011-12 or by taking FMV of flats? 2. Capital gain is applicable for additional 2 flats received in 2015-16? what is the cost of acquisition in this case? 3. sale of 2 flats in 2015-16 which was received from Developer by the land owner is assessed as business income or as capital gain? please kindly advice sir, Send your answer to hariprasadchr@gmail.com
Dear Sir,
To provide an accurate advice we need to first go through the agreement between the builder & land owner, without which it is difficult to pass a comment.
Trust this clarifies your query.
Feel free to call back/ get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
OK Sir, Some other Information about this case : The owners are Interested in developing the Land Property by constructing a multi-storeyed apartment complex and he entered into a Agreement with Developer to develop, construct and sell the apartments to be constructed in that land. Entire cost of construction was born by Developer . Land was transferred to developer in 2011-12 for which Developer agreed to allot 4 flats out of 15 flats constructed. That 4 flats was received in 2013-14 after construction . Developer also used additional area of 625 sq. ft in the complex for which he has given 2187500 in cash. later , due to some issue , he has received additional 2 flats in 2015-16. we have calculated capital gain tax in 2011-12 for land transfer by considering the FMV of land in 2011-12 at the time of transfer as Full value of consideration after deducting the Undevided rights in the 4 flats. We have cost of acquisition of land for the calculation. now my question is for additional 2 flats received in 2015-16 capital gain Tax is again caplicable? because this two flats was received later , which was not considered at the time of capital gain for land transfer. if applicable what is the cost of acquisition?
Capital gain tax is applicable if the same flats is sold after 2 year by the land owner to buyer which was received by him as per Joint Development agreement with Developer?
Dear Sir,
Yes, Capital gain is also applicable on the other 2 Flats.
As per the info provided, I assume that the COA will be nill as you would have already adjusted the COA in your earlier working.
Trust this clarifies your query.
Feel free to call back/ get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Sorry..Will revert after 5 August. Too busy in filings
