ONE MY CLIENT, PURCHASED AGRICULTURAL LAND AND DEVELOPED LAYOUT, AT LEAST MORE THAN 138 SITES WILL BE DEVELOPED FOR SALE. NOW MY DOUBT HOW TO CALCULATE HIS CAPITAL GAIN ON HIS SALE OF SITES. BECAUSE SITE WILL BE SOLD AS ONE BY ONE ALL SITES WILL NOT BE SOLD IN A YEAR. WHAT ARE THE EXPENDITURE TO BE DEDUCTED. HE DID NOT HAVE GST REGISTRATION.
IF IT IS NECCESSARY TO BE TAKEN GST REGISTRATION AS A DEVELOPER TO AVOID LARGE CAPITAL GAIN TAX BY COLLECTING GST FROM BUYER OR TO BE PAYABLE CAPITAL GAIN ON HIS SALE OF SITES. PLEASE YOUR VALUABLE SUGGESTIONS VERY MUCH NEEDED.
18 August 2023
GST registration not required for sale of plots. Capital gains tax payable on sale of plots. Add expenditure for developing the plot as cost of the plot
BUT ALL PLOTS NOT TO BE SOLD IN A YEAR, IF THIS YEAR MIGHT BE 1 TO 5 PLOTS AND NEXT COMING YEARS TO BE SOLD IN RETAIL. HOW TO CALCULATE CAPITAL GAIN TAX THE PLOTS HAVE DEVELOPED IN THIS YEAR BUT SELL IN NEXT YEAR HOW TO DEDUCT EXPENSES IN EVERY YEAR OF SALE OF PLOTS. EXPENDITURE INCURRED ON DEVELOPMENT OF LAND THIS YEAR SO HOW TO PROPORTIONATE EXPENDITURE IN PLOTS SOLD IN DIFFERENT YEARS.
18 August 2023
Add expenses incurred during the year on the plots available during the year. Short term capital gains tax payable on plot sold within 2 years.
BUT, ONLY FEW PLOTS AVAILABLE FOR SALE, ALMOST REMAINING PLOTS WILL BE SOLD IN NEXT AFTER 3 TO 4 YEARS, BECAUSE THE AREA THAT STILL IN DEVELOPING SO ITS TAKE TIME TO SELL, IN THIS CASE HOW TO CALCULATE CAPITAL GAIN ON REMAINING PLOTS.
18 August 2023
Allocate cost and expenses to each plot. Deduct sale value that's capital gains. Indexation applicable for plots sold more than 2 years.
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