An assessee has purchase a plot of Land on 1992 for Rs. 2,00,000/-.
He gave the land to a property Builder. The Builder build some flat and allot 4 flat to Assessee on Dec 2014.
The assessee keep 3 flat for his residential purpose & sold the another flat on june, 2015 for Rs. 20Lakhs.
The FMV of 4 Flat on Dec 2014 was Rs. 60,00,000/-.
What is the Tax implication?
Is there any Tax Planning possible?
On the allotment of 4 flats to assessee the sale consideration would be 60 Lakhs The cost of theplot of land has to worked as under:
Cost = 200000 x (total no of flats -4)/total no of flats
( Since the consideration is for transferring the land for the other flats)
This can be indexed using theIndex for 1991-92 and 2014-15 i.e Cost * 1024/199
Capital Gains would be 80 lakhs - Indexed Cost.
54F exemption can be claimed treating the cost of one flat as investement in residential house. make sure this is NOT the flat that is sold in June
As regards the sale in June 2015, 20 lakhs- 15 lakhs would be short term capital gains.
Rajagopalakrishnan Sir,
One more thing that,
What would be the Tax implication at the time of flat were delivered and flats are not sold.
I need your reply.
Rajagopalakrishnan Sir,
A small doubt
how can he claim u/s 54F
condition of not to
purchase any residential house, other than the new asset(he has got 3 other too), within a period of one year after the date of transfer of the original asset;
Thanks in advance
CAclubindia
