Point of taxation

This query is : Resolved

Dhananjay prasad singh (Querist)
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12 February 2015 A development agreement is one where the land holder provides the land and builder put up building.Thereafter the land owner and builder share the constructed area.But when sale of building by builder through land owner.In this case i do not understand when capital gain tax arise and which amount. please suggest me as soon as possible

Amol S Joglekar

Amol S Joglekar (Expert)
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12 February 2015 If it is a strict developement agreement, there won't be any capital gain. It will fall under business income.

If the possession of the site is handed over to the developer (Normally witnessed through an irrevocable power of attorney), then the capital gain shall be calculated

Can you please give some details soas to give a more focussed answer?

Dhananjay prasad singh

Dhananjay prasad singh (Querist)
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12 February 2015 sir actually at persant many small builders are situated in city and contact to small land holder for construct the building on that area.and contractor construct building flats wise and given some flats and also some money to land lord on agreement basis

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