capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2011 a person has given his land to a construction company and inreturn he has taken 3 falts constructed in the land as consideration for the land.

how to calculate the capital gain tax?
year of taxation?

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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08 June 2011 iNTHIS CASE CAPITAL GAIN WOULD ARISE ON TRANSFER OF LAND
CONSTRUCTION COST OF THREE FLATS WOULD BE THE SALE VALUE OF LAND
SALE VALUE SO DETERMINE MINUS INDEXED COST WILL BE CAP GAIN
In the case of DEVELOPMENT AGREEMENT both the parties enter into an AGREEMENT. The judicial opinion is that the property stands transferred on the day the AGREEMENT is entered into.

where an AGREEMENT results in the conferring upon the developer the rights of management, control and supervision in relation to the LAND being developed, then such AGREEMENT amounts to transfer of the LAND in favour of the developer.
SEE Chaturbhuj Dwarkadas Kapadia v. CIT (2003) 260 ITR 491 (Bom),
SO THE YEAR IN WHICH LAND WAS HANDED OVER TO DEVELOPER WOULD BE THE YEAR OF TAXTION

CA MANOJ GUPTA
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