Question ID :
41064
Capital Gains on JDA but before receipt of Completion certificate
A person X purchased a plot of land admeasuring 400 Sq yds on the following dates and registered rates:
Plot no Date of purchase Size of the plot Consideration in sale deed (Rs.) Market value in sale deed (Rs.)
23/P 31.8.1988 200 sq. yards 15,000 25,000
24/P 29.9.1992 200 sq. yards 30,000 40,000
On 1 June 2019, X gifted this land to Wife (Y), Son (A) and Daughter (B) All of them joined together to develop this plot and build apartments through a developer. In return, the developer gave each of them a certain number of apartments as compensation for the plot of land. Apartments were given as per following
1. Y – 2 apartments
2. A – 2 apartments
3. B – 2 apartments
All the flats received above are being sold in this year 2021-22 however they have not yet received the completion certificate. This also means that the assesees are not eligible for 45(5A) benefit.
Can any expert answer the following issues ?
Issues to be answered:
Taxation in case of transfer of development rights wherein we need to answer the following:
• Sale consideration of the Rights
• Date of Transfer
• Cost of Acquisition of the Rights
• Indexation
• Long term or short Term
Taxation in case of transfer of developed flats wherein we need to answer the following:
• Sale consideration of the Flats
• Date of Transfer
• Cost of Acquisition of the Flats
• Indexation
• Long term or short Term
Avenues to save the capital gains:
• Benefit under section 54
• Benefit under section 54F
Posted by
SRIMANTH KULKARNI
on
Jun 02, 2021
Filed Under
Capital Gains
Answer ID :
81292
1.Yes, sale consideration of rights, 2. Date of transfer of land 3. Cost of acquisition of land rights, 3. Indexation & LTCG
DEVELOPED FLATS 1. Sale consideration of the flats 2. Date of transfer 3. Cost of acquisition of flats, if it's more than 6 months indexation apply 4. Section 54 & 54 of will not be eligible as flats are short term
Posted by
Hari Beldona on
Aug 31, 2021