10 February 2011
A land was purchased by a proprietary concern in 1979 for redevelopment purpose, only a building was constructed and this property was sold in 1984 for Rs3.5 lac and the sales proceeds were to be received in installments of Rs50000/- each. the last installment is still pending. if the proprietary concern receives the last installment as of today what would be the capital gains tax implications???? please reply.....
11 February 2011
Since the land is purchased for development purpose and flat is sold after developing the land, any profit and loss will be treated as business profit.
CAclubindia
