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Capital gain for a builder

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23 December 2015 Is capital gain tax applicable for developer when the flats are sold, in case of JDA where land is transferred by owner in exchange for a share in the final constructed flats?

23 December 2015 For builder the sale of flats is a business income.

23 December 2015 can all the expenses (Expenses related to flats given to owner in exchange of land also) be deducted against the income?




23 December 2015 and what if the owner transfers the land and builder treats it as capital asset?

23 December 2015 Yes those expenses for flat exchanged for land will be deducted as expense.
Land will be current asset for builder.



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