When land is given to builder for construction and in return he gets two floor of the building constructed.The entire building cost would be borne by the builder and would two floors of the building in return and the remaining three floor will be in the complete ownnership of the owner. Please advise the incidence of capital gain tax for the purpose. The Agreement is being made in the AY 2016-2017.
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Capital gain
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Cannot be generalized, but one way is:
Indexed Cost of land and cost of improvement is deducted from the circle rate value of the constructed area received from the builder less transfer expenditure if any; to arrive at capital gains.
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