Capital Gains - Tax

This query is : Resolved

Hussain (Querist)
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09 January 2010 Doubt is :

I own a land and a building on it .
I enter in to a joint developement agreement with a developer
Terms of agreement are
1. 6 Flat will be constructed by the developer (all the cost will be borne by developer)
2. 3 Flat will be retained by the owner and 3 Flat will be given off to the developer as consideration

what is the tax consequence . will capital gain tax be attracted .
if yes , kindly tell me as to how till it be computed . Kindly also give reference to sec and case law if any .

M Prabhakar Menon

M Prabhakar Menon (Expert)
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10 January 2010 There are 2 assets here one is the land and the other is the flat(s), does the sale deed transfer ownership of the land to the flat owner? Once the period of holding exceeds that specified for LTCG, LTCG will applyThe period of holding is different for different assets. Capital gains will be one more source of your income so tax will be levied if u cross the threshold.