Taxability and taxable amount - Land possession

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..... Please advise the taxability issues including the year of taxability and taxable amount? Assessee bought a piece of land in F.Y. 09-10 for Rs. 8 lacs and entered into collaboration agreement. The gist of agreement is as follows : - Date of agreement Sept. 2009 between assessee and developer. Cost of construction to be born by developer. Sharing of built up area with proportionate undivide .....

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..... d ownership rights in land underneath. Assessee will get one floor and developer will get 2 floors. Common areas will be used by both the parties. Developer shall pay Rs. 10 lacs as proportionate cost of land for its share to assessee and also for equalising the share of assessee in allocation. Assessee has handed over the possession of Land in Oct. 2009. Developer to complete the cons .....

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..... truction within 12 month otherwise developer shall pay monthly penalty of Rs. 10,000/- to the assessee. Assessee has irrevocably appointed the developer as lawful attorney in connection with construction. Developer is free to negotiate with buyer (for its share) for sale. Developer will issue the receipts under his signature. - Reply By Surender Gupta - The Reply = IT is method of accou .....

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..... nt and recognization of revenue policy that would determine the year in which your income shall be taxable. The treatment of such land may also be different. Like is it a stock in trade or investment. Accordingly you may computer the income of the assessee either under the head "business or profession" or under the head "capital gains". - Taxability and taxable amount - Land possession - Query S .....

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..... tarted By: - sm surana Dated:- 11-1-2010 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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