Developer

112 views 4 replies

Shivji shaw

Business

6 Points Joined December 2019

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)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197119 Points Joined July 2016

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.

Shivji shaw

Business

6 Points Joined December 2019

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.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197119 Points Joined July 2016

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.