I was one of the four brothers who inherited a property in 2004.
We entered in to a collaboration agreement with a builder in 2013 who will develop the property and give each of us a floor valued at 3 corres market value per circle rate . In addition , we have received 20 Lakhs each in cash.
Is it correct to say that I have to pay Capital gains on Rs 20 lakhs only in AY 2014-15 ? We will receive possession in Dec 2014 .
Thanks
capital gain shall be taxable by taking consideration of 3.20 crores and not just 20 lakhs.
Consideration (A) : 3.20 crores
Less:Indexed Cost of inherited (B) : Not Provided -Say "X"
Capital Gains (C)= (A-B) : 3.20-X
Less: Deduction U/s 54F (D) :3.00 Crores
Taxable C.G (C-D) : 0.20 Crores-X
Note: Take Cost and Consideration proportion to the Assessee part of inherited property
Refer the following case law:
https://itatonline.org/archives/wp-content/files/gita_duggal_54_residential_house.pdf
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