Joint venture agreement and tax confusion

1) plot no 01 bought on 22-12-03 for price of 2,22,230 (which includes all costs) - by owner no 1
2) plot no 02 bought on 6-8-04 for price of 2,22,000 (which includes all costs) - by owner no 2

on 27-12-13 both owner no 1 & owner no 2 came in joint venture agreement with builder.

for 22.5% & 22.5% total of 45% amount/price from sale of flats/units.

other than land nothing is done or provided by owners.

total flats 25 - total area of flats 21,180.67

builder is colleting money in hes own account and buyers also paying 1% TDS after which builder paying 45% share to owners (22.5%each) after cutting 1% TDS ( no Escrow a/c is opened).

project got compilation certificate from pune municipal corporation on 05.04.2018

receiving payment after each flat sale for e.g 20lac is price receiving 4,45,500 + 1% TDS i.e-4,500/-

what will be my tax ?

capital gain ? or business income ?

please help me and please give me reference of section or E.q case 

thank you so much every one 

Replies (2)

"other than land nothing is done or provided by owners."

Mostly depends upon your contract with Builder, but otherwise its Capital Gains.

At the time of transfer of land Capital gain liability will be attracted and due, (for payment of capital gain please refer amended section)

after receipt of Flats from Builder, if you sale the flats you have the option to treat the same as Business income (depending upto satisfaction of AO, as case laws are there) or Capital Gain.

Please refer sections 54, 54F also, as exemptions can be claimed after satisfying conditions 

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