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Taxable?-area held by landowner

Venugopal (B.Com) (67 Points)

27 March 2015

In the Joint Venture of Area-Sharing 50:50 if the landlord retains the 4 flats, by way of 50% of his share, and only the Promoter sells his 4 flats should the area held by the landowner be taken into account while calculating Capital Gains? Kindly help with your views.

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6 Replies

Sowmya.G (CA) (459 Points)
Replied 27 March 2015

Dear Venugopal Ji,

Do you have clear title of 50% held by you.

Venugopal (B.Com) (67 Points)
Replied 27 March 2015

Yes Madam I have clear title on the property.

Sowmya.G (CA) (459 Points)
Replied 28 March 2015

For the purpose of calculating capital gains only the land for which you hold title can be taken into account for calculating indexed cost of acquisition.

Venugopal (B.Com) (67 Points)
Replied 31 March 2015

So if the landlord retains his 4 flats and the promoter sells all 4 of his share of the flats, to calculate Capital Gains should the value of the 4 flats retained by the landlord be added to the land value of the 4 flats sold by the promoter from his own share?