Partnership firm is created, after same land is purchased by firm and registry made on the individual name of both partners
as registry was not allowed on firm name due to being agriculture land
All other process done, land become NA and development can be done on same
For development on same land Joint Venture is done in which landowner will recieve sharing at 25% of each sale and 75% remains with developer. Sale of premises , either shops or residential premises will be done by Land owner.
So what about income tax scenario ?
First party means land owner will be charged capital gain ? or it will be business income ?
capital gain will be charged @ 100% or only on 25% which firm receives ?
Income will be received in periodically basis devide by 4years
what about set off of losses done in first 2years, like office expenses, salaries, other expenses done on land for leveling and boundry etc
totally confused about taxation so till JV agreement pending for terms
please suggest best way for same. and how taxation will matter as well any way to save tax
CAclubindia
