30 November 2014
Assessee entered into joint developed project in the year 2011. And now the project is near by completion and 100 flats are allotted to assessee by developer.
the land brought I'm the year 1994. At that the cost is almost bill.
now how capital gain attracts and how to exemption or benefit from capital gain tax?
Whether it is long term or short term?.
.
.
please guide me
Thanks in advance.
01 December 2014
Is it asseessee is now in business housing development projects, if Yes then capital gain shall be levied under the provisions of section 45(2) conversion capital asset into stock in trade. Full value consideration will fair market value on the conversation. (FY 2011-12) Indexation benefit will available upto finance act 2011 i.e. Taxes shall be paid in the year of sale flats
And Profit and gains under the section 28 Sale value-value of asset on the date conversation-other cost incurred for developing housing society
However, if assessee is not in business profession in housing projects, only capital gain will arise
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