Long term capital gain

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P AGRAWAL (Querist)
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02 January 2016 A & B enters into an agreement in 10.08.2012 with a builder C for development agreement of their land. The consideration is 43% to the owner and 57% to the builder. The development agreement will run from 10.08.12 to a period of 3.5 years (year of completion). Suppose the 43% is of 5.00 crore in rupee terms. Because the land owner has insisted to take equivalent amount of Rs 5.00 crore from the builder in lieu of their 43% share But this 5.00 crore will be given from the date of agreement to the end date of completion of building is over a spread of 3.5 years. My query is how the capital gain will be calculated. Considering the land is ancestral inherited property, and whether any relief, exemption is available to the land owner. And which financial year will be treated for this taxation purposes.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 January 2016 1. The date of transfer : 10.8.12.
2. Consideration 5.00 Cr.
3. Taxability crystalised in the FY 2012-13 / AY 2013-14.
4. Ancestral lands cost of acquisition: Fair Market value as on 1.4.1981.
5. Tax saving avenues: Almost closed due to the lapse of time and due to the terms of the agreement.

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