Sir,
Recently I enerted into a deal with a developer for developing an old building which was purchased by my father
in the y1959. The deatails of this JV are;
1. Builder to pay Rs 84 lakhs upfront.
2. Builder to give me 2 flats of 775 sqft each in the new building. Current price in the locality is Rs. 11000/- psft
3. I do not stay in the old building but there are 12 tennants whom the builder will settle.
4. I have spent Rs. 20 Lakhs in clearing outstanding loan taken by my father by mortaging the building. This amount also incudes 3 lakhs legal and other expense.
5. The value of the building in the year 1985 wold be around 9 lakhs.
Kindly tell me what are my LTCG and whether I can deduct the expenses incurred for getting a clear title for the property.
Thank you,
Gagan Saigal.
CAclubindia
