• Need help for capital gains on builder floor sale in Delhi

Dear Sir

My uncle bought a 200 Sq Yard plot at Priyadarshini Vihar (Delhi
110092) in 1980 and in 2016 he demolished it to cnstruct 4 floors on
it

He has sold One floor for Rs 50 lakh and other three are in his possession

Can you please guide us if any capital gains tax has to be paid so
that there is no penalty etc by IT Department later

He would pay you for this advice and can send you copy of any documents
you may require

Thanks, Regards
Asked 7 years ago in Capital Gains Tax

Dear Sir,

You need to pay tax as per following working if any payable :

Sales Value :- 50 Lacs

Less :-

Cost of Acuquistion :- Purchase price of plot/ Valuation Report of plot as on 01.04.1981 X (1125/100) X (1/4)

Cost of Construction :- Constrcution Cost X (1125/1125) X (1/4)

Net Capital Gain

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
38 Consultations

5.0 on 5.0

You can send me details on my email id vishrut1303@gmail.com

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
38 Consultations

5.0 on 5.0

Hello Sir,

Capital Gains will surely be attracted in your case. We need to go through the documentation in order to understand if it will be Long Term Capital Gain or Short Term Capital Gain, the amount of tax payable and if the tax can be saved in any manner.

Trust this clarifies your query.

Feel free to call / 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
95 Consultations

5.0 on 5.0

Dear Sir,

We can surely guide you in this regards. We will need the following

A. copy of construction agreements

B. Copy of purchase agreement

C. Copy of sale agreement of one flat

Please feel free to call/revert in case you require our services.

Thanks and Regards,

Abhishek Dugar

CA, CS, B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Yes sir he need to pay for the floor he sold . It involves Long Term Capital Gains and Short Term Capital Gains. You can send the details to mail ID modani005@gmail.com for further calculations

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
164 Consultations

5.0 on 5.0

If the ownership of the plot purchased and the newly construed apartments are in the name of your uncle only, there is no capital gains, till such he actually sells the property.

Now that he has sold one floor, he has to pay capital gains on the sale of such property. However, the buyer will not get ownership of the entire plot and instead he may just get undivided share in the land.

Now the cost of acquisition will have 2 components - the cost of undivided share of land proportionate to the floor being sold and the cost of construction. As the cost of construction is incurred only in 2016, it will be short term capital gain and long term capital gain in the case of land, i.e., on the undivided share of the land.

The exact tax liability can be worked out on review of the documents executed. Otherwise, the opinions may not be useful to you.

B Vijaya Kumar
CA, Hyderabad
1001 Answers
124 Consultations

5.0 on 5.0

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