Capital gain on gibing land to builder on conversion
This query is : Resolved
26 September 2016
Dear Sir,
Does Capital Gain arises to landowners at the time of execution of development agreement and giving irrevocable general power of attorney in favour of builder in spite of the fact that neither building plan was approved nor possession of developed flats was handed over by the developer in the concerned financial year in which General power of attorney was given? if yes how to compute capital gain and what would be fair market value and cost of acquisition of land?
Kindly suggest me. Thanking you in advance.
Sanjeev Kr
Does Capital Gain arises to landowners at the time of execution of development agreement and giving irrevocable general power of attorney in favour of builder in spite of the fact that neither building plan was approved nor possession of developed flats was handed over by the developer in the concerned financial year in which General power of attorney was given? if yes how to compute capital gain and what would be fair market value and cost of acquisition of land?
Kindly suggest me. Thanking you in advance.
Sanjeev Kr
26 September 2016
what is the capital asset?
if it is "right in the land".....then it will be calculated at the instance of execution of developement agreement
if it is land...... then the date of transfer shall be as per the situation warranted on the said developement agreement
if it is "right in the land".....then it will be calculated at the instance of execution of developement agreement
if it is land...... then the date of transfer shall be as per the situation warranted on the said developement agreement
26 September 2016
Dear Sir,
Capital Assets is right in land since landowner has been allotted 35% of the total constructed area( 10 flats)and the share of the builder allotted is 65% of the constructed area.The landowner gets nothing in cash in addition to 35% of the constructed area(10 flats) then how capital gain be calculated ? what will be the cost of acquisition of these 10 flats and fair market value if these flats are not developed in the year in which development agreement is executed?
Kindly elaborate the answer.
Thanking You
Since
Capital Assets is right in land since landowner has been allotted 35% of the total constructed area( 10 flats)and the share of the builder allotted is 65% of the constructed area.The landowner gets nothing in cash in addition to 35% of the constructed area(10 flats) then how capital gain be calculated ? what will be the cost of acquisition of these 10 flats and fair market value if these flats are not developed in the year in which development agreement is executed?
Kindly elaborate the answer.
Thanking You
Since
26 September 2016
Find out the full value of consideration.
The land owner is getting 35% of what? can you please elaborate
The land owner is getting 35% of what? can you please elaborate
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26 September 2016
Dear Sir,
perhaps i am unable to understand the question to youThe land owner has 7015 Sq ft area for which he enters into development agreement with the developer to construct multi storied building on 31/08/2014 and irrevocable power of attorney was also executed in his favour. As per development agreement the share of the landowner has been allotted as 35% of the total constructed area and the share of the builder has been allotted 65% of the constructed area. Nothing Cash was paid to him. After development of 31180 Sq Ft, the landlord share 10913 sq ft ( 10 Flats) was allotted to him on 01.08/2016.
Now my question is whether landlord is liable to pay capital gain tax in the financial year 2014-15? If your answer is yes then how it can be calculated? what would be the full value of consideration for 10 flats and how cost of acquisition will be calculated by landlord.? kindly elaborate the answer.
perhaps i am unable to understand the question to youThe land owner has 7015 Sq ft area for which he enters into development agreement with the developer to construct multi storied building on 31/08/2014 and irrevocable power of attorney was also executed in his favour. As per development agreement the share of the landowner has been allotted as 35% of the total constructed area and the share of the builder has been allotted 65% of the constructed area. Nothing Cash was paid to him. After development of 31180 Sq Ft, the landlord share 10913 sq ft ( 10 Flats) was allotted to him on 01.08/2016.
Now my question is whether landlord is liable to pay capital gain tax in the financial year 2014-15? If your answer is yes then how it can be calculated? what would be the full value of consideration for 10 flats and how cost of acquisition will be calculated by landlord.? kindly elaborate the answer.
27 September 2016
See, we have already concluded that since on 31/08/2014, the landowner TRANSFERRED the "rights in the land"
The capital asset is "rights in the land"
Needless to say, this developement agrement must have been registered with the registering authority? Is it?
What is the value on which the stamp duty on the same is paid? Can you please tell?
The capital asset is "rights in the land"
Needless to say, this developement agrement must have been registered with the registering authority? Is it?
What is the value on which the stamp duty on the same is paid? Can you please tell?
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27 September 2016
Dear Sir,
This development agreement is not registered. Only GPA is registered.sir kindly let me know whether in this situation land lord is liable to pay capital gain tax in A.Y 2015-16 in spite of the fact that landlord has not sold any flat till date.
Sir explain the answer.
This development agreement is not registered. Only GPA is registered.sir kindly let me know whether in this situation land lord is liable to pay capital gain tax in A.Y 2015-16 in spite of the fact that landlord has not sold any flat till date.
Sir explain the answer.
27 September 2016
General Power of Attorney (GPA): If the GPA is with consideration, then the question of capital gain will arise.
If the GPA is without any consideration, there is no any question of capital gain.
If the GPA is without any consideration, there is no any question of capital gain.
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