Capital gain

[ishwar hegde]

sir,

we have given open plot for builders iand they give us 2 flats to us as cosidatation we have not yet taken the possesion of the flats. whether we have to pay tax on capital gain during this year? what is the proceedure in this regard? when the actual tax liability occaurs? plz let me know at the earliest.

than you

[Rama Krishana]

It the event of transfer of land in favor of builder that give rise to computation of capital gain. To ascertain the date of transfer, relevant documents, agreement etc. are to be examined. The possession of flats may be a relevant factor for ascertaining the consideration, but taxability is independent to that to be ascertained separately.

AI Summary

Capital gains tax arises on transfer of land to a builder; date of transfer depends on the agreement and documents. Transfer of land to a builder in exchange for flats triggers computation of capital gains; the date of transfer is to be ascertained from the relevant documents and agreement. Possession of the flats may affect the assessment of consideration but does not itself determine tax liability, which arises from the transfer event and must be evaluated separately based on documentary evidence.