Dear Friends,
I need some reviews and comments about the below mentioned issue. kindly give me your valuable feedback.
The situation :
"A" is the owner of a piece of land in Bangalore . "A" enters in to an agreement with a developer to develop the discussed piece of land into a residential apartment consisting of 14 Flats.
the details of the agreement are as follows:
1) Rs. 700000 was given as non refundable security deposit to the land lord( such money was given on the day of registering the deed)
2) on completion of the project 4 flats were handed over to the landlord in exchange of 50% of ownership in Land & Title to land.
3) period of completion of project : 3yrs.
4) date of completion of project : Nov '09
5) flats sold in the month of Feb'10 ( flats of assessee "A")
I want to understand the mode of computation of tax and the tax liability of the assessee "A" with regard to the non refundable security deposit , the manner of computaion of capital gains from the proceeds received upon sale of such flats(4 nos.) and also the relevant assesssment years in which the liablities arise.
CAclubindia
