Capital gains
This query is : Resolved
Srishti Shetty
(Querist)
04 December 2015
case:
Cidco leases land to Mr A.Mr A sells the development rights to a builder for Rs 72.5 lakhs.Builder builds and sells flats on the land.but the consideration of the flats is received in Mr A's name.MrA pays this consideration to builder.How is Rs 72.5 lakhs taxed in A's hands?In whose hands is the sale recipts of flats taxed?
Cidco leases land to Mr A.Mr A sells the development rights to a builder for Rs 72.5 lakhs.Builder builds and sells flats on the land.but the consideration of the flats is received in Mr A's name.MrA pays this consideration to builder.How is Rs 72.5 lakhs taxed in A's hands?In whose hands is the sale recipts of flats taxed?
Amol S Joglekar
(Expert)
04 December 2015
Capital gain for the transfer of lease hold rights will arise in the hands of A.
(Although you are using the word SELL..... please tell me is Mr A empowered to SELL the leased land?) (To the best of my knowledge and belief, one needs to take a pre approval of CIDCO with some payment.. is that so? Please clarify for a better answer to your query.
Leasehold land stands on a different footing...
(Although you are using the word SELL..... please tell me is Mr A empowered to SELL the leased land?) (To the best of my knowledge and belief, one needs to take a pre approval of CIDCO with some payment.. is that so? Please clarify for a better answer to your query.
Leasehold land stands on a different footing...
Srishti Shetty
(Querist)
04 December 2015
CIDCO has not allowed sale of land,so Assessee has transferred the dev rights to developer/ builder.
Amol S Joglekar
(Expert)
05 December 2015
rights associated with leasehold lamd is capital asset.
The capital gain is taxable in the year in which the development rights are transferred to a builder.
The capital gain is taxable in the year in which the development rights are transferred to a builder.
Srishti Shetty
(Querist)
08 December 2015
If an amt of Rs.20 lakhs has been recd.(shownas an advance in the B/S) by the assessee in 2010-11 and the agreement for trf is made in 2014-15 the bal consideration being recd in the same yr,Is 20 lakhs taxable in 2010-11 or the whole consideration is taxable in 2014-15?
Amol S Joglekar
(Expert)
08 December 2015
The nature and character of ADVANCE received in the year 2010-11 will play a crucial role in deciding the taxability.
If the advance is in the nature of " Returnable subject to permission from CIDCO" OR "Clean advance" or like, it will be taxed in 2014-15 i.e. in the year agreement to transfer is made.
If the advance is in the nature of " Returnable subject to permission from CIDCO" OR "Clean advance" or like, it will be taxed in 2014-15 i.e. in the year agreement to transfer is made.
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