Valuation at market value of land and capital gain

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srinivas Ganesh Shet (Querist)
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15 March 2013 namaste all
please clarify me,
5 individuals who were owning a lands individually came together to develop the land into commercial complex to give ti for rental
all of them are now co owners under new co ownersship agreement and contributed their share of land and their capital brought in as land valued at market value which is 80 times more than the book value,
now are they need to calculate capital gain tax for beeing valued the property at market value developent agreement,after completion of the consturction they earn rental income for the same

Soumitra Basu

Soumitra Basu (Expert)
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17 March 2013 THIS IS A BUSINESS ASSET. AT THE TIME OF CONVERSION THEY HAVE TO VALUE THE LAND ON MARKET VALUE BASIS BUT THEY HAVE TO PAY THE TAX AT THE TIME OF SALE.

srinivas Ganesh Shet

srinivas Ganesh Shet (Querist)
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20 April 2013 thank you sir but,if they do not sell,continue as joint owners and enjoy
rents,
now my question at the time of bringing in the lands say for e.g.MR.A bought land at RS 1,000/- 10 Years back and now while bringing the same into co ownership the value of the land is 15,000/- now is he required to pay capital gain tax for bringing in the land at market value than the cost

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