Question ID :
44687
Taxability of Consideration received by a person who is not owner of the land from the developer tow
A person having possession over a land since last 20 years. He is cultivating the land and produce rice crop out of it. He is not owner of the land. Now owner has entered into agreement to sale with a builder to transfer the said land. Builder paid consideration amount of ?60,00,000 to land owner and deducted TDS u/s 194IA. Builder also paid ?20,00,000 to the person holding possession over the land and deducted TDS u/s 194 IA. How Capital Gain will be attracted in this case? Who will get Indexation Benefit? Who will be eligible for exemption u/s 54B? Please advise.
Posted by
CA Ravish Thakur
on
Jul 11, 2024
Filed Under
DIRECT TAXES
The person is only a leaseholder and if he has paid any amount for getting lease that will be his cost and would get indexation. It is capital gains since there is a reliniquishment of the leasehold right
Posted by
SIVADAS CHETTOOR on
Feb 25, 2025