29 August 2015
Sir, We purchased a piece of land 0n 18/09/1986, which we gave for a developer for development in 2004, in consideration we received a flat and some money as refundable deposit from developer in 2008 . For this transaction no tax is paid. The same Flat was sold in current AY(24/08/2014). cost of acquisition of land in 1986 was around Rs.150000/-. Now, what is the tax treatment for the purpose of capital gain? Note: Refundable deposit was paid back to him after completion of construction. what is treatment of amount received as refundable deposit ?
Read more at: https://www.caclubindia.com/forum/capital-gain-treatment-336522.asp
29 August 2015
refundable deposit is a capital receipt and not taxable in your hands. The Fair Market Value as on the date of developement agreement shall be deemed to be the cost of acquisition for the said flat.
CAclubindia
