Real estate (capital gain )query

Dear Sir/Madam,

 

 

1. Mr. ABC  held a parental Land existence from 01.01.1970. 

2. Mr. ABC having five sons, five daughter & one super senior citizen wife as on date    

    01.01.2012.

3. On 01.02.2012 Mr. ABC had died.

4. On 01.06.2012 all five sons and wife of ABC entered into an agreement with a developer   

    for construction of flats on Parental  Land.

5. Summary of agreement 

   (a)  After the flats has complete & sale deed come into existence from actual user of flat ,in  

        each registry developer separately charge construction Value in own favor & Value of   

         land  in favor of ABC & Sons.

6.  Actual Land measurable area as on 01.04.1981 is 21007.42 sq. ft. cost Rs. 586000.

7.  Actual construction of flats & Shops are as under 

      3 BHK 32  Flats. @ 950 sq ft. Each 

      2 BHK 16  Flats. @ 800 sq ft. Each

      19 Shops @ average 208.73 Sq. Ft. Each

8.  Actual Sales during the Fin. year (01/04/13 to 31/03/2014) 

     10 shops   @ 1917.22 sq. ft.

     Total sales consideration for 10 Shops against Land Rs. 3032140/-  (as per sale deed) 

     Total Sales consideration for 10 Shops against construction Rs.- 3519760/- (as per sale deed).

 

 

Query No. 1

Whether capital gain arises on agreement with developer ?

 

Query No .2

How To Settle Sister portion which she got in inheritance (i.e. death of father) ?

 

Query No. 3

How to calculate cost of acquisition of Land ?

 

 

Kindly give me your suggestion on above mentioned query.It Is very helpful to me if all answers are supported along with relevant sections & relevant latest case laws.

AMIT SRIVASTAVA

CA FINAL STUDENT

EMAIL- INDIA.JMJ @ GMAIL.COM

9897360130

Replies (1)

As a CA final student this should be a cake walk for you. Do try to calculate yourselves.

I am giving you guidance on practical matters only i.e query 3

The cost of acquisition can be taken as market value as on1/4/81. for this if you can get any details of sale etc in the vicinity of the above date in your neighbour hood, then it wouldbe good. Else you can assume a reasonable market value considering the neighbourhood locality etc.

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