17 March 2014
I wish to know about capital gain on redevelopment of property. Situation as follows:
X & Y had a property with 3 floors of X & 1 floor of Y. This property went into redevelopment & X recd say Rs. 1.5 cr and Y recd Rs. 0.50 cr in csah and one flat each valed by the valuer at Rs. 1.8 cr of X & Rs. 1.20 cr of Y. I wish to know following:
1) whether it is a transfer u/s 2(47)? Whether capital gain tax is attracted?
2) what is the treatment of cash recd by X & Y?
3) how to determine capital gain in this case? whether following calculations are correct?