Long term capital gain

jitendra (Querist) 19 May 2012 This query is : Resolved
Dear Sir,

We have purchase plot at Hyderabad in the year 2008 agreement in Partner name
And payment made by firm of 38962 Sq Yards costing 7423780/- (incl stamp duty)

I have paid Development charges 450000 in current year Now We have decided to construct 1500 Sq Yards

Now my question is can I Sell the plot to other party If bal sq Yards i.e remain
Can I sell plot

What is the accounting

What is taxation of Partner

Tax computation

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Suhail A.Siddiqui (Expert) 20 May 2012
If there is no bar in selling balance plot from local Govt, you can sell balance portion of the plot and utilise money in its construction, your receipts will get exemption CG Tax .

Shonee Kapoor (Expert) 20 May 2012
Nothing left to be added.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

C. P. CHUGH (Expert) 20 May 2012
Yes you can definitely sell the part of land if local law so permits. So far as the LTCG is concerned, since the property belongs to PFAS you have only one option to save the tax and i.e. by investing into Capital Gains Bonds subject to ceiling as prescribed under section 54EC. Otherwise you have to pay the tax.

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