Calculation of capital gain tax

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Kolkata
23 Points Posted on 19 March 2014

I have acquired a property from my father and now have given the same for reconstruction with the agreement to construct g+3 building. In return I will get 45% share by the way of flat in 1st floor and 2 parking space and for the remaining area in the 45% share I will get cash.
now my problem is that I want to know Few of the tax implications like:
1) When will my Capital Gain Tax arise?
2) How will I calculate FVC? will FVC be only the cash portion which I received?

Thanks

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On 19 March 2014 at 16:42 Report
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ACS/CA
1264 Points Posted on 19 March 2014
1. For FVC : You are getting some money along with the newly house. So consideration would be the money received and where you cannot compute the consideration received you have to take it as fair market value of the assets as per sec 50D (newly inserted by finance act 2012).
 
FVC                   -                    XXX
(BEING THE AMOUNT OF CASH RECEIVED AND FAIR MARKET VALUE OF PROPERTY RECEIVED)
 
LESS   COA              -                    XXX
(BEING COST OF ACQUISITION OF YOUR FATHER AS PER SEC 49(1) ASSUMING YOU HAVE RECEIVED THE PROPERTY WITHOUT ANY CONSIDEATION FROM YOUR FATHER)
 
STCG/LTCG              -             XXXX
 
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On 19 March 2014 at 17:33
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Head Of Department (Accounts & Finance)
1272 Points Posted on 19 March 2014

Dear JAINENDRA JAIN
 

I agree what you are saying BUT,

I am trying to find out some cases on it. Please tell us if you knw any case law on it. 

Regards

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On 19 March 2014 at 18:02
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Kolkata
23 Points Posted on 20 March 2014

Thanks for the sujjestion but would like to confirm that won't the FVC be the cash+cost of construction of builder.

Also please can you provide any case law or any reference regarding this.

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On 20 March 2014 at 14:21
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ACS/CA
1264 Points Posted on 20 March 2014

constructor will not provide u house at their cost. thaey are doing business and surely that will be selling you something above cost.

secondly if cost comes below the rate fixed for stamp duty value than sec 50c will be invoked and computation will be done accordingly.

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On 20 March 2014 at 16:26
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ACS/CA
1264 Points Posted on 20 March 2014
regarding case law for this , i am searching for this and will let u know when i get something material.
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On 20 March 2014 at 16:28

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