Taxability of builder transaction
This query is : Resolved
29 June 2013
MR. X (Builder) enters into an agreement with Mr. y to one flat under construction link payment plan.. for a total consideration of RS 30 lakcs and this flat is to be registered after 4 years.
sir now my questions are:
1) is the above transaction chargeable to capital gain tax in the hands of builder?
a) if yes, then in which year year of agreement or year of registration?
b) suppose circle rate of the above flat after 4 years is Rs. 1 crore. are provision of stamp value(deemed sales consideration) apply?
OR
2) is profit from above transaction chargeable under head PGBP, as it is a business of builder.. if yes
a)is there any effect of circle rate on the above said flat.?
dear experts i'm waiting for your response..
sir now my questions are:
1) is the above transaction chargeable to capital gain tax in the hands of builder?
a) if yes, then in which year year of agreement or year of registration?
b) suppose circle rate of the above flat after 4 years is Rs. 1 crore. are provision of stamp value(deemed sales consideration) apply?
OR
2) is profit from above transaction chargeable under head PGBP, as it is a business of builder.. if yes
a)is there any effect of circle rate on the above said flat.?
dear experts i'm waiting for your response..
30 June 2013
IT WILL NOT BE TREATED AS CAPITAL GAIN IN THE HANDS OF THE BUILDER BUT IT WILL BE TREATED AS BUSINESS INCOME.
AS PER NEW PROVISION, THE REGISTERED VALUE OF THE FLAT SHALL BE TREATED AS CONSIDERATION RECEIVED BY THE BUILDER FROM THE PURCHASER IN THE YEAR OF SALE.
AS PER NEW PROVISION, THE REGISTERED VALUE OF THE FLAT SHALL BE TREATED AS CONSIDERATION RECEIVED BY THE BUILDER FROM THE PURCHASER IN THE YEAR OF SALE.
Message likes :
1 times
01 July 2013
that means after 4 years Rs. 1 crore shall be taxabale in the hands of builder ???
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
