Capital gains

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SACHIN MITTAL (Querist)
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26 December 2011 I am having a Land and I have given it to builder for construction of residential flat with an agreement that i will get 5 flat out of total flat constructed. I will sell all the flat. what will be the Tax Implications.

Mahesh Paryani

Mahesh Paryani (Expert)
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26 December 2011 Dear Sachin.

Section 45 states any profit of gain arising from the transfer of capital asset effected in previous year shall be chargable to income tax

Section 2(47) states transfer means Sales exchange or relinquishment of asset

now refering to your case

techinally there are two transaction involved
1) when there is exchange of asset
2) when there is a sale of exchanged asset

Conculsion
both the transaction would be chargable to capital gain.