How to save Tax for Builders

CA Priyank (Priyank Sanghavi & Co) (296 Points)

09 April 2011  

Friends!!!!!!!

I want to know the TAX Planning for my client. Can you plz help me out from following details?

Fact of the Case:

1. He purchased a land for Rs. 50 lac.

2. He had construed a building on it with 10 flat.

3. Earlier he had assumption that each flat will be sold at Rs. 14.00 lac per flat as per registration amount, but now registration value has shoot up to Rs. 42.00 lac per flat which is equal to its real value.

4. So that his income will be Rs. 280.00 lac on paper. (Rs 100.00 lac for construction)

Can you plz guide me to reduce tax liability. Nature of firm is Partnership