Capital Gain on House hold ancestral property

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Pooja Shah (Querist)
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08 June 2011 Case: As assessee got Land & building from his grand father.. It has been 75- 80 years old property. Assessee sold this property to builder along with Land.Builder will dis-mental the building & reconstruct it again. Agreement value is Rs. 160 Lacs. He got 10 lacs in A.Y. 10-11 & 25 lacs in A.Y. 11-12. Balance amount will be paid in installment till the date of completion of building..

Question: 1) Will it be chargeable to tax?
2)If so, from which date?
3) what will be sale consideration?
4) What will be cost of acquisition?
5) How will indexation be done?

Kindly revert asap. Thanks!!!

Regards,
Pooja.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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09 June 2011 SALE VALUE WILL BE 160 LAKHS
2. WILL BE TAXED IN THE YEAR IN WHICH AGREEMENT ENTD AND POSSESSION GIVEN TO BUILDER
3. FMV AS ON 1-4-1981 WILL BE COA
4. INDEXATION WILL BE DONE FROM 1-4-1981

CA MANOJ GUPTA
JODHPUR
09828510543

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Pooja Shah

Pooja Shah (Querist)
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11 June 2011 Dear Sir,

Thanks for the reply !!

I got the Agreement & I have gone through the same... I am elaborating the same.. Kindly resolve my following doubts:

As per Agreement: There is Agreement of sale of Development Rights between Assesse & Builder. The developer shall pay the said consideration of Rs.1,65,00,000/- in the installment from the building is dismantled till the building is reconstructed.

Question: As per the Agreement, builder will pay the sale consideration in part as follows:
1. 10 lacs in A.Y. 10-11
2. 25 Lacs in A.Y. 11-12
3. 40 Lacs in A.Y. 12-13
4. 40 Lacs in A.Y. 13-14
5. 50 Lacs in A.Y. 14-15.

Q1: How can we take sale consideration in said Assessment Years? or it will be 165Lacs in A.Y. 10-11 itself?
Q2: How will indexation be applied?
Q3: Is there any benefits available under section 54 etc?

Kindly revert asap.Thank you so much.

Regards,
Pooja.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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11 June 2011 THE REPLY HAS ALREADY BEEN GIVEN

Pooja Shah

Pooja Shah (Querist)
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12 June 2011 ya sir, I know but will it be same if amount of sale consideration is received in part as mentioned above???

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