Capital gains tax

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anant (Querist)
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31 January 2013 Dear Sirs,

My father executed a Development Agreement with a Builder in year 2003 for construction of multistoreyed apartment on his 5 kattha ancestral land(no sale deed only khatian) in lieu of non adjustable amount of Rs 6 Lac and 38 percent share in the builtup/saleable area which came to 5 flats as landowner's share.Before completion of the multi-storey apartment there was a family partition in our family and I got 1 flat as my share.My father wrote to the developer to give possession of the flats of landowner's share as per the family partition .In year 2007 we got possession of our allotted flats from the builder as per the family partition.I sold the flat in year 2012 in Rs 28 lac.HOW DO I CALCULATE MY CAPITAL GAINS.HOW MUCH IS THE CAPITAL GAINS IN THE ABOVE STATED CASE.
What is the date of acquisition of the property?The land which is khatiani has been acquired by my great great grandfather before the cadestral survey of 1909-12.
Do I have to bifurcate the land part and the constructed part ? Kindly enlighten me as I have to know the capital gains in order to pay the C.G. Tax.
THANKS 1

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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31 January 2013 1. The matter is lengthy but it can not be said as "Anant". But we have to peep into the events which took place since Development to Disposal.
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2. In which capacity -as an Individual or as the Karta of HUF, Father had entered into the agreement ?
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3. In which manner the Capital Gains liability had been dealt subsequent to the transfer of land to the Developer by the
land owner ?
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4. Family Partition-whether partial or complete one ?
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5.In your case, Cost to previous owner will be your COA .
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anant

anant (Querist)
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31 January 2013 Dear Sir
Although my father executed the Development Agreement as karta of the H.U.family(which is stated in the Agreement also) but did not file tax returns as HUF before or after the execution of the Agreement probably because there was no income from any HUF property.
As to your third query we are not aware if capital gains arises/accrues simply by executing the Development Agreement or later by geting possession of the Flats by the alotees in our family partition.All that I know is that I am the first among the alotees(in our family partition) to have sold my share of flat in May 2012.
As to your query no 4 ,the family partition was total.
As to your query no 5, my question is what is the cost to the previous owner?

Thanks!

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 February 2013 Thanks for point wise response. HUF was also liable to show Capital Gains Income.
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HUF was in receipt of Sales consideration of 6lakhs+ 5 flats against the land. (Fair Market Value of The Flat).
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Value of the land as on 01.04.1981-was to be taken as Cost of Acquisition on which indexation had to be applied.
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In your case, the cost of acquisition is the fair market value of flat in 2007.
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However, consultation with experts will be quite useful.
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