Long-term capital gain on agreement with joint development u/s 45 (5A)

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This discussion explores the calculation of long-term capital gains for a joint development project under Section 45(5A) of the Income Tax Act. It addresses how to determine the stamp duty value of the original land and the completed flats. The query also seeks guidance on the method for calculating capital gains based on the provided details of land purchase, builder agreement, and property handover.

omnath

omnath (Querist)
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30 March 2023 MR A.PURCHASED A RESIDENTQAIL LAND AS ON 10.06.1972 FROM SBI HOUSING SOCIETY. COST RS. 37505/ TOTAL TXTENT 4065 SQ.FT. AFTER CONSTRUNCTION COMKPLTED COST OF RS 75,000/- AS ON 23.10.1973..MR A HAND OVER THE POSSESTTIOIN OF PLOT TO MR Y BUILDERS AS ON 15.10.2019 ON 48 AND 52 SHARE BASIS. MR.Y COMPLETED CONSTRCUTION 10 RESIDENTAIL UNITS AND AND WILL GIVE 4 UNITS TO MR.A AS ON 16.6.2022. MR. Y WILL PAY A CHEQ.RS.45,00.000/- AS ON VARIOUS DATE. MY QUERY IS 1) THE STAMP DUTY VALUE AS ON 23.10.10973, AND STAMP DUTY VALUE OF EACH FLAT AS 0N 16.6.2022. 2) LONG TERM CAPTIAL WORKING METHOD GIVE ON THE ABOVE DETAILES.
TANKAS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 March 2023 You can get stamp duty value of the land as on 01 April 2001 & 15th October 2019 from Sub-registrar office. Similarly, Stamp duty value of each flat as on 16.06.2022 or date of completion, whichever earlier, can be obtained from builder or Sub registrar office. Capital gains as on 15.10.2019 can be calculated based on these figures.

omnath

omnath (Querist)
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30 March 2023 thank sir
MR. Y HAS VALUED RS.45,00,000 PER UNIT. TOTAL OF 4UNIT RS.1,80,00,000/- IN TAMILNADU GOV STAMP DUTY RATE IS 7% ON FIN .YEAR 2022-23 . THE STAMP DUTY VALUE RS. 12,60,000/- . I TAKE THIS STAMP VALUE IS CALCLUTATED BASES ON CAPTIAL GAIN WORKING
TANKAS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 March 2023 Most welcome & Good Luck..

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