Facts of the case:
My Client had a plot of land.
Three years before he gave the land to the contractor for construction of flats on it,and in this connection, he entered in contract with him The term of contract provides for the following :
a) No Contract charges for construction.
b) On the other hand, the land owner will provide 50% flats of the total flats constructed to the contractor.
During the current FY, the contractor handed over 50% of the flats (comes to 20 flats) to the land owner. Out of which,10 is sold by the owner and 10 is still retained by him.
My Queries:
a)Is he liable to capital gain tax (or tax under any other head) during the time of entering into contract for construction
or
b)Is he liable to capital gain tax during the time of completion of construction
or
c) what kind of capital gain tax is leviable on sale of 10 flats.
please reply ASAP
CAclubindia
