Capital gain implications

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KISHORE MAHAJAN (Querist)
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07 March 2016 One person had acquired a land of 6 katha in the year 1983 by spending Rs.5000/-. Now he has done an agreement with a developer to construct a residential complex in that land at the ratio 70:30.30% is for land owners.The stamp duty valuation at the time of registration in 2013-14 with the developer is Rs 2.6 Crores. Now if the land owner gets the property in his name registered in the year 2015-16 after construction completed, for his own dwelling purpose. My question is what will be the LTCG considering Section 53A of transfer of Property Act and Section 2 (47) of the I.T act.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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07 March 2016 As the information available in the query, the assessee (one person) has transferred 70% of his land of 6 katha. What he transferred is land not superstructure that is going to built in future. Hence, the value of superstructure for the purposes of stamp duty in registering development agreement is irrelevant for the purposes of section 48 here.

As per section 50D where the consideration is not ascertainable or cannot be determined, take the fair market value (Sec. 2(22B)) of the land (not the superstructure).