Capital gain-long term and short term
Venkatesha M K
(Querist) 01 April 2014
This query is : Resolved
Sir,
during last year 2012-13 we have given our land for joint development to a builder.
1. We made agreement to construction of Flats. The amount paid to us we mentioned as security deposit.
2. All prospective sale will be made by builder, he has give GPA to register the property of his portion.
3.Our portion will be sold by us and registration will be made by us.
In these case, what will our liability for Capital gains.
Kindly let me know the provision in income tax and exception and mode of filing tax return.
Thanks
MK Venkatesha
9686088277
ajay sethi
(Expert) 01 April 2014
consult your CA .
Rajendra K Goyal
(Expert) 02 April 2014
Consult your tax consultant and show him all the documents.
T. Kalaiselvan, Advocate
(Expert) 02 April 2014
A good question but you have put it before your auditor or tax consultant only and not here.
Anirudh
(Expert) 02 April 2014
Dear Mr. Venkatesha,
Please take it that there are plethora of judicial decisions according to which the capital gain would arise in the same same financial year in which you handed over possession of the land to the developer, as Section 53A of Transfer of Property Act situation emerges in such a factual matrix, and answers the definition 'transfer' as given in Sec. 2(47) of the I.T.Act.
Your putting words like 'security deposit' etc., etc., would not come to your rescue.
