Capital Gains Tax Joint Development Agreement

– The owners wish to construct a building on the land mentioned, but due to the lack of experience in the construction and development of land, are the same for development entrusted to the developer, under these conditions, if the entry into the DA / the handing over of the ownership of land under DA is equivalent to a sale of commercial stocks to make the taxable person a capital gains tax with regard to Article 45(2)? Only in the event that land or buildings are held by the owner of the land or treated as capital assets. Under Article 45(2) of the Law, profits or profits are: which arise from the conversion of an asset into capital by the owner of an asset into an undertaking which he carries on or from its treatment as a trading item, shall be charged to income tax, such as his income from the previous year in which those shares are sold or transferred by him, and for the purposes of Article 48, the fair value of the asset at the time of such conversion or treatment is to be regarded as the total value of the consideration received or received as a result of the transfer of capital. Acquisition cost for the determination of capital gains from the subsequent sale of shares in built-up land = Total value of the consideration in accordance with Article 45 (5A) = 11000000/- for the remaining 3 dwellings. . . .

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