Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Capital gains

Others 384 views 4 replies

prathyusha

articles student

57 Points Posted on 17 August 2015

Dear Sir, Ma'm,

I am having a small doubt related to capital gains i.e,

Actually we are residing in a apartment consisting of 50 individual residential dwellings. So, in case if an aspect arises to demolish the entire buliding and how could that latent land could be segregated between all the owners if they are not interested to recounstruct the apartment.

Thank you,

Usha.

Replies (4)

Ashok J

CA Final

880 Points Posted on 17 August 2015

Each owner will have fractional ownership of lan i.e 1 by 50th share....he is eligible to sell his share...who ever sells their share shall b liable to capital gain...

Ashok J

CA Final

880 Points Posted on 17 August 2015

My doubt is will capital gain arise upon demolition of building..will it amt to relinquishment of an asset.....

Ashok J

CA Final

880 Points Posted on 17 August 2015

Practically how it works out even i dono..i hvv seen a flat purchase sale deed. They only mention cost of flat without specifying cost of land...entire land will be owned by the builder...my reply of fractional ownership was purely based on my knowledge.. Some real estate expert has to reply

prathyusha

articles student

57 Points Posted on 18 August 2015

Yeah thanks ashok even i am not sure about the case if such case occurs what will happen that is the main thing which i wanna get rid of 1/50 th share of land doesnt make sence i hope however even though they doesnt represent the cost of land but somehow they owe a share as ownership on the land if this case arises when such apartment need to be demolished and how can the 50 flats owners could get back there flat value.Yeah,exactly a real estate expert need to answer it .

Thanks