Developer

One of my clients gives his portion of land to the promoter for construction and gets one flat and signs a Development Agreement & Development Power of Attorney in 2020 and after the flats are ready, the developer sells each flat And whatever flat the developer is selling, also showing it in my client's AIS, so Developer is receiving consideration. Then is it Capital gain of my clients ?
Replies (4)
Quick Summary
This discussion explores capital gains tax for landowners who enter into development agreements. When a developer sells flats constructed on a landowner's land, the income should not appear on the landowner's Annual Information Statement (AIS) if the developer is responsible for sales and receives the consideration. Landowners are generally not liable for capital gains tax on these sales, provided the agreements are correctly structured and reported.

As per development agreement, the developer should sell the remaining flats himself, and not through your client's account. Rectify te mistake, or else the landlord will get IT notice.

Thanks for response sir 

Developer sale the the flat and consideration recieved in own account but in each sale agreement landlord signature required due to power ot attorney developer represent all the landlord.when I see the landlord AIS shown AIS sale of immovable property.

Unless all the documents are verified, no comment can be made.

As landlord is not resposible to sale the remaining flats, the transaction should not appear in his AIS report. As such he is not responsible for the capital gain over those flats sold by developer.

Nice source here: 

https://www.caclubindia.com/forum/developer-611343.asp sandtrix

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