08 June 2011
Case: As assessee got Land & building from his grand father.. It has been 75- 80 years old property. Assessee sold this property to builder along with Land.Builder will dis-mental the building & reconstruct it again. Agreement value is Rs. 160 Lacs. He got 10 lacs in A.Y. 10-11 & 25 lacs in A.Y. 11-12. Balance amount will be paid in installment till the date of completion of building..
Question: 1) Will it be chargeable to tax? 2)If so, from which date? 3) what will be sale consideration? 4) What will be cost of acquisition? 5) How will indexation be done?
09 June 2011
SALE VALUE WILL BE 160 LAKHS 2. WILL BE TAXED IN THE YEAR IN WHICH AGREEMENT ENTD AND POSSESSION GIVEN TO BUILDER 3. FMV AS ON 1-4-1981 WILL BE COA 4. INDEXATION WILL BE DONE FROM 1-4-1981
I got the Agreement & I have gone through the same... I am elaborating the same.. Kindly resolve my following doubts:
As per Agreement: There is Agreement of sale of Development Rights between Assesse & Builder. The developer shall pay the said consideration of Rs.1,65,00,000/- in the installment from the building is dismantled till the building is reconstructed.
Question: As per the Agreement, builder will pay the sale consideration in part as follows: 1. 10 lacs in A.Y. 10-11 2. 25 Lacs in A.Y. 11-12 3. 40 Lacs in A.Y. 12-13 4. 40 Lacs in A.Y. 13-14 5. 50 Lacs in A.Y. 14-15.
Q1: How can we take sale consideration in said Assessment Years? or it will be 165Lacs in A.Y. 10-11 itself? Q2: How will indexation be applied? Q3: Is there any benefits available under section 54 etc?
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