08 July 2022
Dear sir, One of my client entered joint development Agreement. My client made GPA of his agriculture land to one of the developer. The developer paid Rs . 825000/-, as a good will to my client. Now the good will taxable income or not
08 July 2022
thank you sir, When development process completed both of them share the 50-50 of developed sites. Then good will taxable under CAPITAL Gain.
BUT ACTUALLY WHAT HAPPENED MY CLIENT RECEIVED GOOD WILL AMOUNT IN DIFFERENT FINANCIAL YEARS MEANS 2018 RS. 2.50LAKHS 2019-20 RECEIVED RS.3LAKHS IN THIS YEAR MEANS 2021 RECEIVED RS.70000/-. AND THIS FINANCIAL YEAR MEANS 2021-22, THE DEVELOPMENT PROCESS COMPLETED THEY SHARE THEIR SITES IN 50-50 RATIO.
MY PROBLEM IS FOR LAST FINANCIAL YEAR WHEN HE RECEIVED THE GOOD WILL AMOUNT NOT DECLARED IN HIS INCOME TAX RETURNS. NOW WHAT TO DO
BUT HE RECEIVED ENTIRE GOODWILL AMOUNT MEANS 8LAKSHS RUPEES TAXABLE INCOME SHOWING UNDER SHORT TERM CAPITAL GAIN OR LONG TERM CAPITAL GAIN HOW TO CALCULATE THE INCOME TAX.
08 July 2022
It will be added to gains arrived from the transfer of land. If holding of land is 2 years or more then the total gains will be long term.
MY CLIENT WAS HAVING AGRICULTURAL LAND IT WAS CAME FROM HIS INHERITANCE PROPERTY HE DECIDED TO DEVELOP THE LAND AFTER THE PROCESS OF ALLEGATION INCLUDING DEVELOPMENT OF LAND UNTILL FOR THE USE OF HOUSE CONSTRUCTION. THEN HE CONTACTED THE DEVELOPER BUT WHEN HE WAS RECEIVED THE AMOUNT BOTH OF THEM DID COME TO THE JOINT DEVELOPMENT AGREEMENT. AFTER THEIR CONDTIONS WERE SATIFIED MY CLIENT RECEIVED GOOD WILL AMOUNT THROUGH THE BANK IN DIFFERENT DATES. NOW THIS FINANCIAL YEAR 2022 THEY BOTH HAVE ENTERED THE JOINT DEVELOPMENT AGREEMENT. SO THIS THE PROBLEM SIR, PLEASE DONT MISTAKEN ME DEAR SIR, I NEED KNOWLEDGE OF THIS SITUATION CREATED BY THE CLIENTS BEYOND THEIR GOING TO TAKE A PROPER SUGGESTIONS.
08 July 2022
IT department checks the total tax liability, to be collected at earliest. If you have paid it, no need to worry for delay in other formalities.
I HAVE FORGOTTEN ONE THING THAT I HAVE TO INFORM TO YOUR KIND ATTETION, NOW MY CLIENT DECIDED TO SELL HIS TWO SITES OUT OF HIS SHARE IN THIS CURRENT FINANCIAL YEAR COULD WE DECLARE THE OMMITTED GOOD WILL INCOME TO THIS YEAR. IS THERE ANY POSSIBLE YOUR GUIDENCE NEEDED.
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