Capital gains

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2012 dev agreement is entered into by husband with a dev around 10 years before agnst a token amt paid by him and the bal cons to be paid in the form of two flats to be transfered in his case. later on husband dies and after 10 yrs the builder tr the 2 flats in the name of wife. in this case whn the capital gain will be attracted and whther it will be taxed in ind capacity in the hands of wife or as an karta of HUF

ramprasad

ramprasad (Expert)
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04 April 2012 Hi,
As per Maya Shanoy case development agreements will be taxed when the possession of land is given to the developer.

Husband has pay the tax in the year in which the possession of the land handed over to the developer.

Subsequent sale of flats by the wife will be taxed in her hands.

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2012 that means even if no consideration recd at that time still the tax has to be paid .and if so then wht abt the exemption u/s 54 which will not be able to take because of the time constraint of pur of hp within 2 years .

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