Question ID :
Mr. A and Mr. B and M/s ABC Limited (Collectively "landowners") entered into JDA with M/s XYZ Limited ("Builder")in the FY 2012-13 for developing housing project on their land and received a refundable token advance of Rs. 3 lacs. Project was not completed in time and the time is extended by mutual consent between parties on 30/05/2018. Project is consisting 3 multistory building of 48 flats each. As per agreement landowners will get 40% of fully developed constructed unit/ area in proportionate of their land contribution ratio balance 60% builder will get. The first multistory building was completed in FY 18-19 as per completion certificate issued by the competent authority. Builder and the landowner sell 18 flats out of 30 flats in FY 18-19, 14 flats in FY 19-20, 3 flats in FY 20-21 and balance flats shall be sold in coming years. Builder and landowners have distributed the sale consideration, with mutually consent, in proportion as mentioned in JDA in the year in which sale took place. Land acquired by Mr A in FY 1998-99 say 10 lacs and Mr B for Rs. 15 lacs and M/s ABC Limited in FY 2003-04 for Rs. 75 lacs.
01. How LTCG calculated in the hand of landowners. Whether the same is arise in the year in which sales have been made or in the year in which completion certificate is received or sale consideration actually received from the builder in proportionate to the land utilized in a particular year/ registry.
02. What is Cost of acquisition for the landowners. Whether indexation will be given upto the date of JDA or to the date of completion certificate or to the date of registry or to the date of amount actually received from the builder.
03. As the LTCG arises in more than one year, what will be the time limit to make investment u/s 54 and 54F etc.
Navin K. Gupta
Dec 03, 2020