capital gain

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mayank (Querist)
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15 July 2010 mr A (CA) has a piece of land acquired on 1.4.06.
he started construction in 2008 and completed the flat scheme in 2010.
he sells 2 flats on 31.3.2011, 3 flats on 31.3.12 and remaining flats on 31.3.13.
what will be the taxability?

srinath

srinath (Expert)
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16 July 2010 Whenver he sells the proportionate value of the land would be treated as Long term Capital Gain since it is held for more than 36 months in all the three cases

Since the flat was completed only in 2010(assuming before march 2010), the flats sold in the year 2011 and 2012 would be treated as Short term Capital Gain and the flat sold in the year 2013 would be long term capital gain