capital gain
This query is : Resolved
08 October 2017
I developed my own pot and build a building on it.
given possession to flat holders.
I started construction in 2012_13 and also sold flats and paid income tax on profit on sale of flats.
I got completion certificate in 2016.
Now want to work capital gain on 66 R land used for construction.
its anceateral property.
how to calculate capital gain. plz suggest.
08 October 2017
01. did you transfer the 66R land to the Society/Condominium?
02. did you sale the flats at the OR above the ready reckoner rate?
02. did you sale the flats at the OR above the ready reckoner rate?
08 October 2017
out of 66R , construction is on 55 R includes balcony, stair case and 10 R is garden 10 R is
09 October 2017
that is ok......but please let me know....
01. have you transferred the land to society/condominium?
02. while selling the flats, did you sell at or above the ready reckoner rate?
01. have you transferred the land to society/condominium?
02. while selling the flats, did you sell at or above the ready reckoner rate?
09 October 2017
not hand over to society and sold above the reckoner rate.
09 October 2017
Since sale of flat is above recknor rate, it means you have already offered the entire profit for taxation.
See my point is, in normal way, the sale price of a flat consists of (land cost + construction cost + profit)....ok?
The recknor price takes care of these 3 factors viz. land + construction + profit.
In your case, land being ancestral, there was no COST per se of the land.
This implies that you have offered more profit than your peer......am i right?
Logically you need not pay any capital gain at the time of transferring the land to society...(At the time of conveyance)
your view please.
See my point is, in normal way, the sale price of a flat consists of (land cost + construction cost + profit)....ok?
The recknor price takes care of these 3 factors viz. land + construction + profit.
In your case, land being ancestral, there was no COST per se of the land.
This implies that you have offered more profit than your peer......am i right?
Logically you need not pay any capital gain at the time of transferring the land to society...(At the time of conveyance)
your view please.
09 October 2017
Thank u very much sir for your guidance .
Above all this I want to know How to work on capital gain.
should I consider the total constructed area amenity space only or all 66 R plot
09 October 2017
01. So far as this land area is concerned, you dont have to work out / pay any capital gain because you have treated it as business income.
02. For normal working of capital gain of land........ you can take the Fair Market Value as on 01/04/2001 as the cost and fair market value of the said land as on the date of transfer to society as sale price and work out the capital gain....with indexation benefits.
02. For normal working of capital gain of land........ you can take the Fair Market Value as on 01/04/2001 as the cost and fair market value of the said land as on the date of transfer to society as sale price and work out the capital gain....with indexation benefits.
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