Hello,
my father invested in a flat about 10 years ago which hasn't been completed till date.... I have been trying to contact the buyer but he has been avoiding my calls and I couldn't visit him in person as I am living in a different city.
last week one of his employees called me and told me that he will return me the money in installments of Rs 1-2 lakhs per month or otherwise.
my father told him that after investing in the property after so many years if I do not get more than the amount invested its pointless.... The builder agreed to pay 28 lakhs and amount invested is 22 lakhs
He says he will start disbursement of the money from this month onwards..
My questions are as follows
Q1. Since the money will be given in small installments and it will take more than one financial year to cover the whole sum how does my father show it in his Income tax return (father is retired and annual income less than 3 lakhs)
Q2. since the flat was not completed and sold but builder will return money will it be treated as capital gain
Q3. How to keep the money in bank...I mean since it will be coming monthly or say every 40-45 days... so can I make fd or keep it in sb or do I need to keep it in capital gain account
Q4. and what terms and conditions should I put in the agreement before handing me over the cheques so that the builder will not cheat us again this time and such that when the money will be paid in full the flat will only be then owned by the builder ....something like that....
Q5. will I be able to use the whole money to repair my existing house and build some new furniture or it can be only utilise to build a new house (capital gain account type)
please help.....thanx in adv
details of flat---- Under construction property
anything else I should know
CAclubindia
