09 February 2014
I am a partner in a LLP and i transfer property as capital contribution in FY 14-15 then u/s 45(3) such transfer shall be chargeable to tax in the year in which the transfer takes place. However no gains has actually been encashed by me since it is a capital contribution. In F.Y. 16-17 the LLP finishes constructing on the land and generates TDR. Can I pay the LTCG in FY 16-17 when the income is generated instead on FY 14-15. ANd how shall we treat the LTCG between the 2 FYs,
Second query: If i transfer the land with limited usage say 1 FSI and then later say during construction after 2 years I provide the LLP the right to construct 2 FSI then shall new capital gains tax arise on revaluation of the FMV of the land due to more FSI?
09 February 2014
LTCG or STCG is payable on transfer of assets or even on receiving part payment or on signing of the development agreement or even on giving physical possession.
You cannot transfer the CG in 2 years for that yu have to sale part i one year and part in other year but CG cannot be avoided.
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