26 February 2009
Situation to be called as Development of the Land. Firstly he sold the land that means it amounts to transfer of property. So provisions of capital gains attracted. Now he constructed the flat so he can claim the cost of construction as exemption u/s 54 against capital gains.
26 February 2009
If a person buys an Apartment, Property discription in Sale Deed includes undivided share of land also. This is obviously because, it is not possible to construct any superstructure except over land only.
On the same analogy, solution given by Sri Chetan appears to be logical and practical too
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