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Capital gain on constructed property
A man has purchased a property in 1990 & after that in year 2011 he constructed the 4 storey on that building. now he has sold the 1/4th part of the land along with one storey.
Replies (3)
with reference to a case law Vimal Chand Golecha (1993) 201 ITR 442 (Raj)
in my openion you have to calculate capital gain seprately for both land and building.
Regards
there are other caselaw also you can refer
CIT v Lakshmi B. Menon (2003) 264 ITR 76 (Ker):
CIT v C.R. Subramanian (2000) 242 ITR 342 (Karn).
Ramachandra Rao (1999) 236 ITR 51 (Mad)
CIT v Citibank N.A. (2003) 261 ITR 570 (Bom)
For considering short term capital gain in case of Building and long term capital gain for Land at what basis sales consideration can be bifercated for computation.
Example:
If total sale consideration is 20,00,000
Land purchased in 1997 for Rs.2,00,000
And constructed building as on 1-4-16 at cost of 10,00,000
Thank you in advance
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