Develpoment agreement ...taxation...

This query is : Resolved

Mallika Shah (Querist)
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14 February 2014 an assessee has entered into development agreement on 16.3.2013.consideration is to give four flats to the seller of plot (ie. asessee) within 18 months of agreement.
whether capital gain applicable and how to determine it

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 February 2014 depends on when the land is handed over to the developer. the capital gains will trigger on handing over the possession.

so it is a subjective matter...joint reading of the agreement and the facts of the case decide the trigger.

please refer http://bcasonline.org/articles/artin.asp?369

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Mallika Shah

Mallika Shah (Querist)
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15 February 2014 POSSESSION IS IMMEDIATE...consideration is 4 flats valued as 48 lakhs

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 February 2014 then it shall be taxable in the current year itself.

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