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.
Capital Gains on sale of Flats
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
Asked 2 years ago in Capital Gains Tax from Mangalore, Karnataka
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?
Asked 2 years ago
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?
Asked 2 years ago
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
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