Computation of CG on sale of flats obtained vide land development agreement


I bought a housing plot in 2001 for a consideration of Rs 3 laklhs. I gave the land in 2011 to a builder with a development agreement wherein 2 flats of 1550 sq feet each will be my share after development. Presently the development is complete and I want to sell the flats to propective buyers for a consideration of Rs 25 lakhs for each flat ( Stamp registration value of each flat being Rs 23.25 lakhs ). How should I calculate capital gains tax in this scenario ? Can I avail exemption on indexation based cost of land ?

asked Jun 07 '12 at 12:08 by Madan Kumar 111

If plot is still in your name and it was not sold to builder in 2011, then you can compute flat cost by indexation of cost of land also.

But if you sold land to builder in 2011 via transfer deed and got two flats in return, selling these flats now would be a short term gain.

answered Jun 09 '12 at 13:25 by Pankaj Batra 5.2k320


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Asked: Jun 07 '12 at 12:08

Seen: 2,393 times

Last updated: Jun 09 '12 at 13:25