I have a land which was given for development in 2017.The area of Land is 1000 sq.yards on which builder is going to construct 20 flats. As per Agreement the flats are shared equally between me and builder. I purchased that land in 2004 for 1500000. As per Agreement me and builder has 50:50 ratio in undivided land.
In 2019 march completion certificate has been issued and I take possession of flats in April 2019.
The stamp duty value of land on the date of issue of completion certificate is 2500000 and flats stamp duty value is 1500000 per flat.
Now My queries is
- While computing capital gain what is the cost of acquisition of land i.e can I take full 1500000 with indexation or I had to limit 750000 with indexation since I has 50% share in undivided land.
- What is the sale consideration
Is it Inclusive of Land and building ( i.e 1500000*10+2500000*50% ) OR
It is only the Stamp duty Value of Flats Received (i.e 1500000*10)
- The Words Used In Sec 45(5A) is stamp duty value of the land or building or both, of the landowner’s share in the project/developed estate, on the date of issuing of certificate of completion by the competent authority, to the land owner, as the deemed full value of the consideration received or accruing as a result of the transfer of the capital asset.
- In This what is Significance of the word “BOTH”. I am asking this query because due to JDA I am getting Flats and I am Foregoing share in my land. So If the 50% Land Value also Included in Sale Consideration (i.e my remaining share in my own land) it will increase my capital gain
- As per My basic Understanding the word both means when land is given for development and part of land is used for construction of flats and remaining part is developed as plots and land owner will get some flats and plots, so that situation only stamp duty value of both land and building has to be considered. Is My Understanding is Correct?
Kindly Help
CAclubindia
