24 December 2008
A Land of 5000 Sq ft is given a Developer & Builder in 2004-05 for Development and the consideration for the said land was a Flat of 1000Sq ft and a Shop of 300 Sq ft in the same Premises of Land under development. Value of Both is Considered in the Agreement Flat 1000 Sq Ft 1250 1250000,Shop 300 Sq Ft@4000 1200000/- Total Consideration 2450000/-
Possession of both Flat & Shop is received in 2007-08 Question 1) Whether Transaction is Subject to Capital gain or Business Income? 2) If Capital Gain in which year the Income is Chargeable to Tax whether 2004-05 or 2007-08? 3) Sale Consideration As per Agreement in year 2004-05 is Rs. 24.5Lakh but the value for the same in 2007-08 is 29.Lakh Which Sale Value to be considered?
CAclubindia
