Joint development
This query is : Resolved
13 July 2013
Please clarify the tax liability on the below topic
One of my client has entered a joint venture with a builder where in the both Parites will have equal share.
The site is demolished and the builder has taken up the construction of 12 flats 6 for builder and 6 for the owner.
The Owner has not sold the Land. Now the owner of the land has received Rs.500000/- as refundable deposit and Rs.750000 as Non refundable amount as goodwill.
Wheather the amount of Goodwill received is taxable under Income Tax, if yes under which section and Head.
One of my client has entered a joint venture with a builder where in the both Parites will have equal share.
The site is demolished and the builder has taken up the construction of 12 flats 6 for builder and 6 for the owner.
The Owner has not sold the Land. Now the owner of the land has received Rs.500000/- as refundable deposit and Rs.750000 as Non refundable amount as goodwill.
Wheather the amount of Goodwill received is taxable under Income Tax, if yes under which section and Head.
Guest
Guest
(Expert)
14 July 2013
14.07.2013
Dear Raghavan,
Rs. 7,50,000/- is the Goodwill received by your client towards surrender of development rights to the Builder which can be argued under Section 10(38) and 50(C)to be non-taxable income under the head Profits & Gains from Business or Profession.
Regards,
Dear Raghavan,
Rs. 7,50,000/- is the Goodwill received by your client towards surrender of development rights to the Builder which can be argued under Section 10(38) and 50(C)to be non-taxable income under the head Profits & Gains from Business or Profession.
Regards,
15 July 2013
it is not clear whether your client is individual or business entity
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