Joint venture - capital gains

1156 views 8 replies

Dear All

An Individual person entered into Joint Venture with another Individuals for convertion of land to Residential plots.

Here land owner taken advance of Rs. 15 lac towards joint venture. is this advance taxable.

1) Land owner is female Sr. citizen not having PAN card.
2) taken advance Rs. 15 lacs. maybe in instalments, Rs.5lac + Rs. 10lac by cheque.

My questions sir:
1) Do we need to give PAN number to bank though cash received through Cheque?
2) Is tax applicable for this advance?
3) Is this needed to put in Capital Gain account of bank?
4) Do we need to show this income to department, if yes, in which column this income should be shown?

Please guide me in this regard.

Thanks....
 

Replies (8)

PAN number mandatory for sale / purchase of immoveable property valued at Rs. 5 lakhs or more.

Thanks Mihir, But it is just intial agreement we are not transfering property to any others. But Agreement should be getregistered.

Correct me, the ownership title of the land will remain with the female, and the rights to construction is been given to another person for monetary consideration. I think tax will be payable on the amount received.

Originally posted by : Mihir


Correct me, the ownership title of the land will remain with the female, and the rights to construction is been given to another person for monetary consideration. I think tax will be payable on the amount received.

 

 

YA, POA will we given to second party for the purose of convertion into Residential sites. Rights will not be given to sell. Later we wll give him his share. thats the plan.

I think she should obtain PAN number. And if she is a Sr Citizen, then one of her responsible and trustworth family member should manage the transaction on her behalf. Nobody can fortell how long she will remain active. It is always better to provide for all kinds of contigencies in matters relating to property.

Advance should be taxable under income from other sources.

Thanks and

My questions sir:

 

1) Is tax applicable for this advance?

2) Is this needed to put in Capital Gain account of bank?

3) Do we need to show this income to department, if yes, in which column this income should be shown?

Ok thanks a lot...

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