02 January 2008
Hi, A plot of land has 6 co-owners. They decide to build ownership flats on the plot. If the developement rights are transfered to a builder (who is one of the co-owners) what would be the Tax implication in the hands of co-owners as well as the builder.
At present the balance sheets of the co-owners show cost of land. Now as one of the co-owner has been provided with the development rights, there shall be no tax implication. The cost of construciton shall be shared equally among co-owners.
CAclubindia
