Regarding Joint Development Agreement
This query is : Resolved
Quick Summary
akshay maloo
(Querist)
19 May 2022
Four Individuals name A, B, C, D are joint owner of some piece of land and out of them two i.e. A and B wanted to make partnership firm in the name of AB Associates and carried plotting business in that land.
1.) Can all four A,B,C,D enter in a joint development agreement with the partnership firm AB Associates and give rights to development of the land and sale plot to probable buyers?
2.) If answer to above questions is affirmative, then when will capital gain be taxable in the hands of A,B,C and D?
3.) Can A,B,C,D take benefit of sections 54, 54F etc to save capital gain tax?
4.) Taxability in the hand of partnership firm AB Associates? What will be the cost for AB Associates?
1.) Can all four A,B,C,D enter in a joint development agreement with the partnership firm AB Associates and give rights to development of the land and sale plot to probable buyers?
2.) If answer to above questions is affirmative, then when will capital gain be taxable in the hands of A,B,C and D?
3.) Can A,B,C,D take benefit of sections 54, 54F etc to save capital gain tax?
4.) Taxability in the hand of partnership firm AB Associates? What will be the cost for AB Associates?
CA R SEETHARAMAN
(Expert)
19 May 2022
1 Yes.
2 Capital gains taxable at the time of selling the flats.
3 Yes 54F exemption available.
4 Cost to the firm is total construction cost for all the flats.
Tax on profit earned by the firm sale value of flats related to the firm less cost above stated.
2 Capital gains taxable at the time of selling the flats.
3 Yes 54F exemption available.
4 Cost to the firm is total construction cost for all the flats.
Tax on profit earned by the firm sale value of flats related to the firm less cost above stated.
akshay maloo
(Querist)
19 May 2022
Thank You Sir, but the partnership firm will not sell flats. Firm will carry on business of developing plot and then will sell plots only.
CA R SEETHARAMAN
(Expert)
19 May 2022
In such a case reply is modified.
1 yes.
2 Taxable on sale of plots.
3 54F exemption available.
4 Cost to the firm is development cost and profit earned by the firm is taxable in the hands of the firm.
1 yes.
2 Taxable on sale of plots.
3 54F exemption available.
4 Cost to the firm is development cost and profit earned by the firm is taxable in the hands of the firm.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reward for festival
- 18% Rent a cab
- Movement of goods by packers and movers - type of sale - Reg.
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- ARCA LOGIN
- Rectification under processing even after 6 months cpc portal
- Appointment of Auditor By Form ADT-1
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Missed uploading GST Invoice
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
