Receipt from builder for giving new house-capital gain ?
This query is : Resolved
03 June 2012
Hello everyone,
one of my client had a room in a chawl (cost 50000). a builder has approached him and told him that he want to make residential complexes here. It will take 1.5 to 2 yrs of time.
Builder has promised him a 2 bhk flat in the building (market value now 40 lacs) and has given to my client rs.10 lacs maintenace cost since he the construction will complete after 2 years.
How should i compute the capital gain ?
one of my client had a room in a chawl (cost 50000). a builder has approached him and told him that he want to make residential complexes here. It will take 1.5 to 2 yrs of time.
Builder has promised him a 2 bhk flat in the building (market value now 40 lacs) and has given to my client rs.10 lacs maintenace cost since he the construction will complete after 2 years.
How should i compute the capital gain ?
03 June 2012
40 lacs +10lacs will be sales consideration in the year of sales
or
Rs. 10 lacs as sales consideration and rs. 0 as cost cost of acquisition of the new flat as future is uncertain
or
Rs. 10 lacs as sales consideration and rs. 0 as cost cost of acquisition of the new flat as future is uncertain
03 June 2012
Rs. 10 lacs is for comepensation for not doing business in that particular area and therefore it should be treated as income from business. No capital gain should arise for the flat.
04 June 2012
@soumitra basu. just to correct u compensation in not for not doing business in the area it is given because builder will demolish the chawl and assessee has to shift to other place and he will have to pay rent for two years. for this purpose rs.10 lacs in given by the builder.
but my client has his own flat in other area and he is not paying any rent since he is using his flat for residence.
but my client has his own flat in other area and he is not paying any rent since he is using his flat for residence.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Disallowance of Section 43B(h) to sez units
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Sale of property furniture sale
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Redevolpment of bldg in mumbai
- Refund of AY 22-23
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
