Capital gain

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2011 if Mr. A has a plot of land with book value of Rs. 1 lakh.. Mr. A involved in partnership with Mr. B(who constructed the building on such land)..now both partners have equal share in this land and building & market value of this L & B is Rs. 6 crores..
whether this transaction will attract any Capital Gain..If Yes, then who will b lible to Capital gain..& what will b the amount of capital gain??? plz reply

CS Bijoy

CS Bijoy (Expert)

17 August 2011 The Question of Capital gain arise when there is transfer of Capital asset for consideration and the consideration is more than the cost of acquisition. Only than Capital gain will be considered that amount and tax will collect.

Here the Mr. B also become the owner of the land that means there is transfer now need to know whether for consideration or not is for consideration and consideration is excess of cost of acquisition than Mr.A will be responsible for Capital gain tax.

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 Mr. A owned the land & Mr. B has to construct building (mall) on that...nw as per joint venture terms cinema is with Mr. A & all other shops are with Mr. B...now whether Mr. A is lible for LTCG on such t/f of land to J.V.??? ale consideration for LTCG for Mr. A will be the price of land taken i.e. Rs. 6 crore as per J.V. agreement.. Sec 50C will apply or not??? Book Value of land at the time of agreement is Rs. 100000/-.. both are equal holder in land & building...