Sale of land received under land development agreement
This query is : Resolved
14 December 2017
There is a person who had given his land under land development agreement and in return he is getting three flats rest all are builder's share (35:65-share of land owner and developer). These flats are the only considerations as no monetary consideration received by land owner to builder.
Now the problem is he had not paid capital gain tax for flats received under land development agreement but now he is selling one of the flat for Rs. 49 lacs. What will be the cost of acquisition of the flat while computing capital gain?
Now the problem is he had not paid capital gain tax for flats received under land development agreement but now he is selling one of the flat for Rs. 49 lacs. What will be the cost of acquisition of the flat while computing capital gain?
14 December 2017
Cost of acquisition of one flat will be 1/3rd of cost of acquisition of land.
14 December 2017
Sir as per your reply -
Land was purchased in the year 1993 and the cost was 91427 with indexation today the cost = 248681 and 1/3 rd of it will be 82894 so does capital Gain will be 48.17lacs 🙄🙄 apart from sec 54 exemptions can you please suggest some ways of saving such huge amount of tax..
14 December 2017
Yes capital gains working is right. 54EC exemption available.
14 December 2017
1/3 rd undivided right of land in 35% of total holding and one among the 3 flats
are selling now,
Cost of the above should be arrived as follows:-
cost of land is 1/3rd of 35% of Rs.91427 =Rs. 10,666/-
cost of flat = Cost of construction to be obtained from builder.
are selling now,
Cost of the above should be arrived as follows:-
cost of land is 1/3rd of 35% of Rs.91427 =Rs. 10,666/-
cost of flat = Cost of construction to be obtained from builder.
14 December 2017
Sir as per my view cost of construction of flat will be added to cost only if at the time of completion of construction he had shown it as sale consideration and paid capital gain but in this case he had not paid any tax on capital gain at that time.. so now will the income tax authorities allowed him to take benefit of including cost of construction of flat when he is selling one of them ?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Errors in lTDS FORM 26 QB FILING FOR Last instalment payment FOR HOUSE PROPERTY PURCHASE
- Address Proof Required Gst Registration in UP
- Regarding Capital gain of NRI
- TDS deposited by party after the filing of income tax returns
- Reg Correction Form 15CB & 15CA
- Gstr9 fy23-24
- What is the Solution if UPDATED Return139(8A) is Invalid? Or how to Valided Return?
- Foreign assets include NRE & FCNR deposits maintained in India ?
- Appeals pending - time limit
- REGARDING ITR RETURN PROCCESSED BY DEPARTMENT
- Voluntary gst tax given in DRC FORM 3 US 122 AND US125
- Rule 42 Calculation
- At least one Business Code is mandatory either in Schedule Nature of Business or at Point 61
- Fixed assets to be expensed out resulting nil value
- ITC RECREDIT NOT SHOWN IN GSTR 9
- Regarding Tata Motors Stock
- GSTR9 ITC AVAILED CLARIFICATION
- Gstr9 2023-24
- Wrong itc ingstr-3b coloum4-b-1
- Reclaim input disclose in annual return 23-24
Trending Online Classes
-
6 days Certification Course on GST Practical Return Filing Process
CA Pratibha Goyal16 December 2024
CAclubindia
