Re: [aaykarbhavan] Capital gain tratment

Q:

One of my clients had a bungalow, it was redeveloped by a developer as a building  and my client received 5 flats in the said building. Now 2 flats are sold what will be capital gain treatment specifically with regard to cost of acquisition.

Opinion: 1. At the time of development agreement with builder, assessee had not transferred the asset. 

2. consideration paid for the development of that land+building, assessee's cost was value of all flats given to builder as compensation for development.

3. Now, cost of acquisition (can be said)= original cost of acquisition+ cost of improvement i.e. cost of flats given to builder as compensation.

4. Said cost can be divided in to no. of flats(5 flats) as per their area

 and that will be the cost of acquisition of flats.

Regards,

CA M. Indani

On Wed, May 15, 2013 at 3:34 PM, amit chauhan <amit777chauhan@yahoo.co.in> wrote:

 

Dear all, Pleas give your advice One of my clients had a bungalow, it was redeveloped by a developer as a building  and my client received 5 flats in the said building. Now 2 flats are sold what will be capital gain treatment specifically with regard to cost of acquisition. Thanks Amit Chauhan

--

CA Mahesh B Indani

Mob- 9422620850

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