19 December 2015
i purchased open plot in 2010 for Rs. 80,00,000/- and given for development in 2013. the builder allotted 10 flats worth rs.1.75 cores and i sold the same flats in 2013-14 for Rs 70 lakhs and in 2014-15 for Rs. 1.05 crores financial years. I purchased the open plot in 2013.14 for Rs. 65 lakhs and again i purchased the open plot for 80 lakhs in 2014.15. my question is whether i have to pay capital gain tax on sale of Residential flats or whether can i show under income from business head. kindly explain most urgent . thanks for all
21 December 2015
The applicable head of income is capital gains. You need to compute capital gains at the time delivery of possession to the builder taking the value corresponding to the proportion of land allotted to the builder as well as on sale of completed flats. As the dates of purchase and delivery of land are not available (only year is mentioned), it is not clear whether the asset is long term or short term asset.
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