Capital gain - query

Tax queries 319 views 5 replies

A building was constructed on open Plot under Joint Development Agreement in 2006. Both builder & landlord took 50% share of saleable area after recovering cost of construction.

Now, in 2019, the landlord has sold 1(one) flat for 60 lacs.

What will be the Cost of Acquisition for calculation of Long Term Capital Gains??
 

Replies (5)
what is the purchase year of the flat as per agreement ?.,sold in 2019
Flat was not purchased. Many Flats were received for his share as per the terms of Joint Development Agreement.
This will be considered business (builder line) and flats will fall under Inventory (Stock in trade) and it will be a profit Loss on sale of flats.
No capital gain question arises.
Sir, I am talking from point of view of landlord. Not from the point of view of builder.
If na agriculture land sold he can invest in agriculture land


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