GOODWILL TREAT INCOME OR NOT

This query is : Resolved

raghavendra b (Querist)
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24 June 2024 DEAR SIR,

ONE OF MY CLIENT OWNED 4 EKAR OF LAND AND ENTERED INTO JOINT DEVELOPMENT AGREEMENT IN THE YEAR OF 2021-2022. THE DEVELPOER HAS PAID GOOD WILL THROUGH BANK ACCOUNT RS.400000/- AND RS.200000/- AND CASH PAID RS.200000/-. THE AGREEMENT SHARES BETWEEN 50:50 AFTER DEVELPOMENT.

1. THE GOOD WILL RECEIVED FROM THE DEVELPOER TAXED IN HAND OF MY CLIENT
2. IF YES WHEATHER WILL IT CONSIDER TO BE BUSINESS INCOME OR OTHER SOURCES
3. ONCE SELLING PLOTS HOW TO CALCULATE CAPITAL GAINS ON THIS SITUATION
4. HOW TO FIND OUT EXPENDITURE FOR DEDUCTING FROM CAPITAL GAIN

YOUR VALUABLE REPLY MUCH NEEDED SIR

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 June 2024 Yes, include it in capital gains calculation.
On selling plots deduct indexed cost of land to arrive at capital gains.
Deduct any expenses incurred from capital gains.

raghavendra b

raghavendra b (Querist)
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25 June 2024 THANK YOU SIR FOR YOUR REPLY,

WHAT IS THE DATE OF ACQUISITION WHILE COMPUTING CAPITAL GAIN

REGARD

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 June 2024 Consider your original date of acquisition.

raghavendra b

raghavendra b (Querist)
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29 June 2024 THANK YOU SIR FOR YOUR REPLY

THE AGRICULTURAL LAND IS INHERITED PROPERTY WHEN THEY HAVE ENTERED INTO JDA THE DEVELPOER SHOULD CONVERT INTO FOR COMMERCIAL PURPOSE. THE LAND STILL SITURATED IN RURAL LIMIT.

REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 June 2024 Rural agricultural land beyond certain kms from municipal limit exempt from tax.

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