How to Compute Capital Gain on Collaboration Agreement of Property ?

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  1. Arpit Singhal

    Arpit Singhal New Member

    I have a house which i bought in 1975 for Rs 1,50,000. Today i wish to get the house demolished and construct 4 floors on that land. So therefore i approached a builder who agreed to demolish and construct 4 floor and out of the 4 floor ,one floor will be his consideration for building the floors. Despite that no other consideration will flow from our side. His share of flat will be given to him after he gives possesion to us and it will take 15 month to construct all the floor.

    Doubts arise in my mind :
    1). What will be the Sale Consideration ? Whether it will be the sale consideration of one floor given by us to him or the market value of 3 floor that will stay with us.
    2). What will the Cost of acquistion ?
    3). When will the Capital gain accrue ? whether at the time of entering agreement or at the time of giving possesion ?

    I will request all the Professional to comment on this issue.
    Last edited: Sep 19, 2016
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