Capital Gains on Owner's Share in Development Agreement with Irrevocable GPA

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  1. gmvmk18

    gmvmk18 New Member

    Suppose, an Owner gets 100 sft share by virtue of a 'Development Agreement cum Irrevocable GPA' and this deed is executed on 1-8-2016, the construction by the Developer commenced on 15-8-2016 and the Market Value per sft is 100/-. One year later, the construction is completed and the Owner sold his share for 15000/- as the Market Value per sft is appreciated to 150/-.

    1. When will Capital Gains for Owner's Share arise?
    2. If, Owner is liable to pay Capital Gains when construction commenced i.e. on 15-8-2016, how will the income from sale of Owner's Share the following year will be treated by Income Tax Dept.?
     
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