An individual Mr. X is a owner of land and 3 years ago he has entered into a joint development agreement with developer which is a Private Limited Company. The developer had agreed to construct a residential complex and it will transfer certain no. of flats to Mr. X in consideration of the land. On final completion of project developer transferred 40 flats to Mr. X and all the flats were sold by Mr. X.
In this regard I want to know since Mr. X transferred a vacant land to developer therefore Section 50C will be applicable to on account of land or else on flats.
Clarification sought on application of Section 50C of the Income Tax Act to land transfer or subsequent flat sales. An individual entered into a joint development agreement with a private limited company developer, where the developer agreed to construct a residential complex and transfer a number of flats to the individual as consideration for the land. Upon project completion, the developer transferred 40 flats to the individual, who subsequently sold all the flats. The query seeks clarification on whether Section 50C of the Income Tax Act applies to the transfer of the vacant land to the developer or to the flats received and sold by the individual. (AI Summary)
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