jhonny (NA) (156 Points)
04 April 2012hello friends..
A person sold his plot of land to a Construction firm.In consideration they offered 9 flats to the seller out of 30 flats constructed on the aforesaid land.The land is held for more than 36 months.The land is an inherited land before 1981.The registration is pending.What are the tax implications.?Will it attract capital gains tax?What will be the Consideration?Which are the sections attracted?
Rekha
(CA FINAL)
(79 Points)
Replied 04 April 2012
Yes, It attracts Capital Gains. Person is liable to tax for the above transaction.Since land purchased and held for more than 36 months, Indexation Benefit is available to this.. Sale Value should be considered as an consideration( i.e) fair market Value of the 9 plots..
CAclubindia
