Calculation of capital gains tax in case of development agre

COST INFLATION INDEX WILL BE COMING INTO ROLE FOR THIS,

i.e,as u have bought land in 2001-02 the cii-426 for that year and if u have sold now then the cii is 852,

here amount taxable is sale consideration-(expenses incurred for sale)-(cost of purchase after inflation index)-cost for improvement

eg:sale consideration 10lacks,expenses for sale-25000,land as on 2001-02-3lacks and cost of improvement as on 11-12 100000,

now taxable amount,

                                             sale consideration =1000000

less:cost of purchase after considering cci    =300000*852/426

                                                                           =600000

            cost of improvement=100000*852/785  =108535

                                                expenses for sale  =25000

                                                     taxable amount =266465

   the amount is taxable as long term capital gain since u hold asset for a period more than 3yrs and taxable @ 20% of 266465

       wait for others to reply

capital gains accrue for land in the year 2010 due to handing over possession of land  and for building(flat) in 2012-13

Ya Vikas is right ...because possession of Flat still in yours hand which is sold in 12-13

when land is given for joint development , possession is handed over and capital gains attracted immediately for land portion. Refer Bombay High court decision