• 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
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.
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

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.
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Sorry..Will revert after 5 August. Too busy in filings
Abhishek Dugar
CA, Mumbai
2936 Answers
123 Consultations

5.0 on 5.0

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