26 July 2016
what is the Taxation treatment in case of sale of Flats in 2015-16 by the land owner to buyers, same flats was received from his developer as consideration for land transferred to him. ( allotted to the owner) in the year 2013-14. Total Flats constructed 15 Allotted to Land owner 6 Remaining allotted to developer 9 ( Entire cost of Construction was born by Developer only)
28 July 2016
Entering of development agreement and handing over of possession to the developer amounts to transfer as per the provisions of Income Tax Act, 1961 [section 2(47)]. In your the GPA and possession might have handed over in FY2013-14. Hence, capital gain for transfer of land (extent transferred to the developer) to be computed in the year 2013-14.
For transfer of 5 flats in FY2015-16, again capital gain needs to computed considering the balance extent of land held by the landowner.
28 July 2016
ok sir, Some other point regarding the case: Land was Transferred to Developer in 2011-12 We have calculated capital gain tax in F.Y. 2011-12 for land transfer total land transfer 18.5 cents Flats given to Land owner in 2013-14 (4 flats as per original Agreements) Undivided rights over land in this 4 flats is 22.21% we have deducted this Undivided rights from the FMV of land as at transfer full value of Consideration of land 49,51,000 ( as per valuation report)
2 flats was again received in 2015-16 ( as per revised agreement) this two flats was not taken in account while calculating capital gain 2011-12 Kindly advise me. regarding capital gain of this 2 flats received in 2015-16 about its cost and consideration
CAclubindia
