CAPITAL GAIN, URGENT QUERY, PLEASE ANSWER

This query is : Resolved

AMIT AGRAWAL (Querist)
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06 February 2011 SIR, I PURCHASED A LAND ON 01.04.2005 FOR Rs. 450000/- NOW I ENTERED IN TO A DEVELOPMENT AGREEMENT WITH A DEVELOPER ON 31.12.2009 AND GIVE POSSESSION OF LAND TO THE DEVELOPER FOR A CONSIDERATION OF Rs. 2500000/- AND RECEIVED PAYMENT OF Rs. 500000/- AT THE TIME OF AGREEMENT AND REMAINING PAYMENT SHELL BE RECEIVED IN NEXT YEARS AND RELINQNISH ALL THE RIGHTS IN LAND, NOW I WANT TO KNOW WHAT IS THE POSITION OF CAPITAL GAIN FOR ME , IS THIS TRANSFER IN TERMS OF SECTION U/S 2(47) , PLEASE ANSWER ME IN DETAIL AND TELL ME WHAT TAX LIABLITY AND REMEDY TO SAVE THE TAX

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2011 Transfer or relinquishment of right in any property is treated as transfer and as such
you are liable to pay capital gains tax.
When the land will be transferred by executing the registration documents? please clarify.