Case 1: 2 brothers own a plot of land purchased in 2010, want to enter into Joint Development agreement with builder, builder have agreed to give 4 flats to each owner (total 8 flats). Will land owner will get exemption from capital gain tax. if yes under what section and upto what amount ?
Case 2 : A land owner doing Job in company, purchased a plot of land in 2005 and now he wants to develop this plot on his own and wants to construct 5 flats, out of which he wants to keep 2 flats for him and the remaining 3 flats he will sell. So how income tax will be applicable in this case ?
Should we convert his plot of land into stock in trade ? if converted into stock in trade capital gain will arise which will be taxable in the year of sale of flats but can we claim exemption of this capital gain tax ?