What agreement should a land owner prefer to avoid immediate LTCG as income tax ,on signing of agreement for land development works ,when the Builder is ready to pay only 20% as refundable interest free deposit ,
OPTION A:-Either land owner to Go for Developemnt agreement with special POA ( sec.45 .comes into picture as TRANSFER of entire asset)
or
OPTION B:-and owner should opt for JV agreement without POA with that Builder , in that scenario,once units are built by the Builder and proportionately handed over to land owner( by taking refund of interest free deposit),
The land owner also sells them in open market , so LTCG on finshed product-flats /shops only has to be paid by land owner. not double LTCG as per Dev.agreement.
Third querry also arises, land owner can not claim for GST adjustment/ refund as the input GST is/was in the name of the Builder .
CAclubindia
