Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Development Agreement Tax implication for the Landlord

Income Tax - Started By: - Raghav Kumar - Dated:- 6-12-2015 Last Replied Date:- 27-12-2015 - Hi All,I have a set of queries on tax implications for landlord when he enters a development agreement with a builder. At a high level the queries can be classified as below: At what instance the capital gain arises when the GPA is transferred to the builder for his share on the date of registration of the development agreement. Note: The consideration here is builder will construct ten flats on the land .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rect me if am wrong.Assume the land is of 1000 sqr.yrds.Builder will be constructing ten flats at his cost in that land. Landlords share is four flats and builders share is six flats i.e. 40:60 ratio(Landlord : Builder).Landlord and Builder have registered the development agreement on 2nd-Jan-2015.As per terms the Landlord gives a GPA for 600 sqr yards of land which would go to builder for consideration of constructing all flats at his cost.Now the Long term capital gain has arised on the 600sqr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

00.Now after indexation the Capital gains are ₹ 25,00,000.Is my understanding correct in arriving at capital gains as mentioned above?Hence before filing income tax returns for AY2015-16 he has to either invest ₹ 25 Lakhs in REC bonds/Purchase a new flat for ₹ 25 Lakhs/Invest ₹ 25 Lakhs in Capital gains account to buy a flat within next 2 years.Now assume four flats were handed over to the landlord on 1st-Dec-2015 and all the four flats were sold to buyers as the construc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version