Question ID : 41064

Capital Gains on JDA but before receipt of Completion certificate

A person X purchased a plot of land admeasuring 400 Sq yds on the following dates and registered rates: Plot no Date of purchase Size of the plot Consideration in sale deed (Rs.) Market value in sale deed (Rs.) 23/P 31.8.1988 200 sq. yards 15,000 25,000 24/P 29.9.1992 200 sq. yards 30,000 40,000 On 1 June 2019, X gifted this land to Wife (Y), Son (A) and Daughter (B) All of them joined together to develop this plot and build apartments through a developer. In return, the developer gave each of them a certain number of apartments as compensation for the plot of land. Apartments were given as per following 1. Y – 2 apartments 2. A – 2 apartments 3. B – 2 apartments All the flats received above are being sold in this year 2021-22 however they have not yet received the completion certificate. This also means that the assesees are not eligible for 45(5A) benefit. Can any expert answer the following issues ? Issues to be answered: Taxation in case of transfer of development rights wherein we need to answer the following: • Sale consideration of the Rights • Date of Transfer • Cost of Acquisition of the Rights • Indexation • Long term or short Term Taxation in case of transfer of developed flats wherein we need to answer the following: • Sale consideration of the Flats • Date of Transfer • Cost of Acquisition of the Flats • Indexation • Long term or short Term Avenues to save the capital gains: • Benefit under section 54 • Benefit under section 54F

1.Yes, sale consideration of rights, 2. Date of transfer of land 3. Cost of acquisition of land rights, 3. Indexation & LTCG DEVELOPED FLATS 1. Sale consideration of the flats 2. Date of transfer 3. Cost of acquisition of flats, if it's more than 6 months indexation apply 4. Section 54 & 54 of will not be eligible as flats are short term