Capital gains calculations
This query is : Resolved
27 September 2010
Sir,
a propert owner entered into a joint venture agreement with a builder. The terms of the agreement is as follows:-
1. The owner auhorises the Developers to construct a new building in the property admeasuring 3360 Sq.Ft. and the Developers shall allot 54% built-uo plinth area in the proposed building construction and in addition the developers shall also pay a sum of Rs.22 lakhs to the owner and the owner shall refund the above said amount of Rs.22 lakhs to the developers at the time of completing the project and at the time of handing over the built-up area and the developer shall retian 46% built up plinth area in the proposed building for themselves and in consideration of such development and allotment the owner has agreed to transfer 46% Undivided share in the land .
What is the capital gains tax liability for the owner of the property?
Sir,
a propert owner entered into a joint venture agreement with a builder. The terms of the agreement is as follows:-
1. The owner auhorises the Developers to construct a new building in the property admeasuring 3360 Sq.Ft. and the Developers shall allot 54% built-uo plinth area in the proposed building construction and in addition the developers shall also pay a sum of Rs.22 lakhs to the owner and the owner shall refund the above said amount of Rs.22 lakhs to the developers at the time of completing the project and at the time of handing over the built-up area and the developer shall retian 46% built up plinth area in the proposed building for themselves and in consideration of such development and allotment the owner has agreed to transfer 46% Undivided share in the land .
What is the capital gains tax liability for the owner of the property?
28 September 2010
Property owner has sold only 46% of the land. cost of acquisition of 46% of the land will be calculated as per the value of purchase and index.
Sale consideration will be value of new developed house. That will be calculated by various means fairly otherwise AO will appoint valuation officer.
Rs. 22 lakhs has been given as security deposit. this will not be treated as sale consideration since it is refundable.
Sale consideration will be value of new developed house. That will be calculated by various means fairly otherwise AO will appoint valuation officer.
Rs. 22 lakhs has been given as security deposit. this will not be treated as sale consideration since it is refundable.
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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Opting our of sec 44AD
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Multiple trade mark
- Transporter Declaration form
- Regarding TDS Applicability For Director Remuneration
- Copyright software
- Value of property in capital gain
- LC charges in relation to Asset purchased should be Capitalised ?
- E-Invoice applicability for new Startup
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
