A friend entered into JDA with builder in 2018.
Original land bought in 1970 and house constructed there on.
The salient features of the agreement was that the builder was to demolish old house on the land and construct 4 floors and in addition pay the owner 10lacs.
In lieu, builder will get top floor.
In 2020 whole building was completed and builder exercised his right to sell the top floor. However, on paper the floor was sold directly by friend (owner) to buyer at Rs.10 lacs which is also the Stamp duty value and circle rate. The actual sale amount was higher and the builder pocketed the amount above Rs.10 lacs. What would be my friend's tax implication on this transaction?
Later, in 2021 owner sold 1st floor for 40 lacs.. what would be tax implication for this transaction and the tax implication when he sells his other two floors also?
CAclubindia
