I have a Question!!!
Please Help me out on this... :)
One of my Client has a Property which he just got built from a Builder as per the popular 4 floor Plans i.e. Ground PLUS Three and has given the Top floor to the Builder and got some Consideration in return.
My Question is: How is the Taxability of this event is to be Handled?
He is the Owner of the Land and the old property on which a new property is now constructed. How to go about it.
He has the Remaining 3 floors with him.
Monetary Assumptions:
Say the Initial Purchase Price was 3 Lakh as on 1-4-1981;
Say the value of the Entire Building was 1 Crore before reconstruction and 1.6Crore, i.e.40 Lakhs per floor, Post Construction;
He gives the Forth Floor to the Builder and gets in consideration:
a) 10Lakhs (value taken lowest)
b) 25 Lakhs (value taken 1/4 th of 1 Cr)
c) 30 Lakhs (value taken greater than 1/4 th of 1 Cr and less that 1/4th of 1.6Cr)
d) 40 Lakhs (value taken 1/4th of 1.6Cr)
e) 50 Lakh (value taken greater than 1/4 th of 1.6Cr)
I am giving these values so that what ever is the most feasible Solution Set, Please Use the Appropriate Combination to Explain the Right Approach, Or please use any of your Figures to explain it.
Thanks
Arun
CAclubindia
