Tax liability of land owner in case of joint developement agreement
This query is : Resolved
31 December 2015
I (land owner) Purchased land in 2005 for Rs. 5,00,000
Entered into JDA with developer on 10-12-2015 for Rs.2 crore
Total consideration is 2 crore i.e
1. Rs. 40,00,000 by cheque dated 15-12-2015
2. 3 flats, 2 commercial shops, 1 parking...total Rs. 1.60 crore
AIR reporting is of Rs.2 crore
I want to know my tax liability and account entries for a.y.2016-17 and applicability of sections 54.....
thanx in advance....
03 January 2016
Development ratio and date of purchase of land not specified in the query. For example development ratio is 50: 50 and the date of purchase falls during FY2005-06 say 1-4-2005, the tax liability calculation is as below:
1. CII FY 2005-06: 497
2. CII FY2015-16: 1081
3. Transfer of 50% land cost equal to Rs. 250000
4. Period of holding: From 1-4-2005 to 14-12-2015: > 3 years
5. Nature of asset: Long term capital asset
5. Computation of tax
Consideration: 2,00,00,000
Indexed cost of acquisition 5,43,763
[250000x1081/497]
Long Term capital gain 194,56,237
You can avail exemption u/s 54F refer CIT v. Smt. K. G. Rukminiamma Karnataka High Court
1. CII FY 2005-06: 497
2. CII FY2015-16: 1081
3. Transfer of 50% land cost equal to Rs. 250000
4. Period of holding: From 1-4-2005 to 14-12-2015: > 3 years
5. Nature of asset: Long term capital asset
5. Computation of tax
Consideration: 2,00,00,000
Indexed cost of acquisition 5,43,763
[250000x1081/497]
Long Term capital gain 194,56,237
You can avail exemption u/s 54F refer CIT v. Smt. K. G. Rukminiamma Karnataka High Court
04 January 2016
sir section 54F means investment in dt flats parkings,etc?....
hrtoshnival_adv@yahoo.com
cell no.9822262111
04 January 2016
yes residential flats
04 January 2016
Refer section 50D and also case law of KG Rukminiamma Vs. CIT, Karnataka High Court
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