capital gain tax - land given for developement
This query is : Resolved
ANWAR DAMANWALA
(Querist)
20 February 2010
pls see following case.
Mr. A has purchase land in F.Y.2001/2002 for Rs.100000-
he has given that land for developement to XYZ Co. in F.Y.07/08.
Mr.A got Rs.2,00,000- + 5 flats (2500 sqf). from XYZ co. as consideration.
Mr.A recd. Rs.200000- in F.y.07/08.
But the bldg. get complete in F.Y.08/09 he got ready 5 flats in the month of Dec-09.
Mr. A sold that all 5 flats to customers in F.Y.09/10.
in above case pls tell...
1) in which f.y. Mr.A has to pay i. tax?
2) he will get LTCG benifit or not?
3) how his tax liability will calculate.
Thx
Anwar
9823548882
Mr. A has purchase land in F.Y.2001/2002 for Rs.100000-
he has given that land for developement to XYZ Co. in F.Y.07/08.
Mr.A got Rs.2,00,000- + 5 flats (2500 sqf). from XYZ co. as consideration.
Mr.A recd. Rs.200000- in F.y.07/08.
But the bldg. get complete in F.Y.08/09 he got ready 5 flats in the month of Dec-09.
Mr. A sold that all 5 flats to customers in F.Y.09/10.
in above case pls tell...
1) in which f.y. Mr.A has to pay i. tax?
2) he will get LTCG benifit or not?
3) how his tax liability will calculate.
Thx
Anwar
9823548882
22 February 2010
Because Actual consideration for Land is Rs. 20,00,000 + 5 Flats, therefore, amount of sale considration for land is Rs. 20,00,000 + Fair Market Value(FMV) of flats.
As given in Capital Gain chapter that whenever we will receive first installment of Sale consideration(here Rs. 20,00,000), then computaion of capital gain will be in the hands of assessee. Therefore, in the year os 2007-08 computaion should be in the hands of assessee for whole consideration.
2) For the those 5 sold flats there will be STCG, because held less then 3 years.
3)For land Computation will be:
Sale Consideratoin = Rs. 20 lac + FMV of 5 flats
(-) Indexed COA of land =__________
LTCG =
for 5 Flats, computation will be:
Sale Consideration = Amt. received from buyers
(-) Cost of Acquistion = FMV of flats on the date of acquisition.
STCG =
Regards!!!
Dinesh S. Adhikari
As given in Capital Gain chapter that whenever we will receive first installment of Sale consideration(here Rs. 20,00,000), then computaion of capital gain will be in the hands of assessee. Therefore, in the year os 2007-08 computaion should be in the hands of assessee for whole consideration.
2) For the those 5 sold flats there will be STCG, because held less then 3 years.
3)For land Computation will be:
Sale Consideratoin = Rs. 20 lac + FMV of 5 flats
(-) Indexed COA of land =__________
LTCG =
for 5 Flats, computation will be:
Sale Consideration = Amt. received from buyers
(-) Cost of Acquistion = FMV of flats on the date of acquisition.
STCG =
Regards!!!
Dinesh S. Adhikari
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Accounting treatment of AMC alongwith the purchase of Laptop
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
