Question on treatment of gift Tax

818 views 1 replies

My Tax enquiries are 1] will there be any gift tax if we give gift other than cash such as land to someone who is not related?

2] when we enter into agreement with a builder, we provide him land and for this consideration he gives us some flats or say built-up area.

Do we have to treat the proceeds as long term cap gain or pay cap gaintax as soon as builder hands over flats 

Fr calculating the capital Gain - should the  constrcted area ibemultiplied by cost of construction and the indexed cost of acquisition is deducted and the gain is taxed. afterwords whenever the  flats are sold agsin do we  have to pay long term or short term capgain tax 

What is the best way of approaching this from the Tax angle to have minimum liability?

Replies (1)

1) No.

2)If the right in the land is given up partially and property is received in lieu then it will be regarded as transfer. The capital gain will be calculated as difference between the cost of that portion of land given up and the value of flats received. Indexation benefit is applicable


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Threads
Loading