LONG TERM CAPITAL GAIN ON DEVELOPMENT OF ANCESTRAL PROPERTY

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Buddhadeb Das (Querist)
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27 October 2022 Dear Sir,
We are consisting of five brothers made joint agreement with the developer for developing our 200 years ANCESTRAL PROPERTY and accordingly the developer agreed to pay lump sum amount in 3 instalment and the developer already paid adhoc payment on a equal ratio i.e. 5 lac each of the co-sharer and accordingly they are invested such amount in PM Barista yojana plan in Bank, remaining 2 instalment are yet to pay and the developer also agreed after completion of the project 5 flats also be distributed among them.
Now our query is whether capital gain will raise in near future for receiving adhoc payment and flat from developer? and if yes ,what is the procedure to calculate of Capital gain if occurs or to get rid of capital gain on development of ancestral property .Please reply
Thanks
Buddha deb Das

Read more at: https://www.caclubindia.com/experts/ask_query.asp property measuring 6

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 October 2022 The adhoc amount received would be treated as advance, while capital gain would be assessible in the year of getting possession of the flats, wherein the CG would be calculated over total installments along with FMV of the flats received.

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Buddhadeb Das

Buddhadeb Das (Querist)
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27 October 2022 Thank you very much for your quick response

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 October 2022 You are welcome ...

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