We have two storeyies building having a builtup area of 5000 sq ft. A builder has taken over the full riots of the building for developing purpose and has given us some money in advance and later some more shall be paid to us with some alternate space area and few flats and shops etc. I would like to know that the initial amount paid to us in advance shall be entered as in which account. Will it attract capital gain tax? Or capita gain tax shall be payable after taking the possession of the alternate space, flats and shops etc
10 July 2023
The capital gains over the advance received along with other gains in aggregate, will be payable in the year of completion of the building.
CAclubindia
