Regarding Joint Development Agreement
This query is : Resolved
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?
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.
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.
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- SFT Cash Deposit in Current Account
- Copyright software
- When TDS on GST applied
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
