When the landowner by terms of agreement gives land to builder in exchange of Constructed Flat, whether he will be liable for Capital gain tax?
DHANAJI VASANT MAHADIK (Account Trainee) (38 Points)
12 December 2016When the landowner by terms of agreement gives land to builder in exchange of Constructed Flat, whether he will be liable for Capital gain tax?
ABHIMANYU JHAMBA
(partner)
(146 Points)
Replied 12 December 2016
It will amount to "exchange" and subject to Capital gains tax.
However, if the land sold is 'agricultural', no capital gains would arise.
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