Calculation of Capital Gains in case of transfer of allotment of unregistered plot at yamuna xprsway

1. Yes, capital gain will still arise as for the purpose of calculation of capital gain, the sales consideration will be considered as higher of actual sales price or circle rate.

Further, the difference of circle rate (17500 per sqft) and selling price (4500 per sqft) shall also be taxable in the hands of buyer under section 56.

2. Yes.

3. Yes.

4. Deemed buying price of y will be INR 17500 as Y has already paid tax on the differential.

5. There will be a host of case laws on this topic and it will be difficult to reproduce the same.

6. Sorry I didn't get the ask here. Request you to take a phone consultation for detailed discussion.

1. It is an extinguishment of rights in the property which is also treated as capital asset and capital gain will be applicable in the hands of X. However, it is a transfer of long term capital asset, benefit of indexation of cost is available. 

2. As the nature of capital asset is land therefore capital gain provisions in respect to immovable property will be applicable.

3. Yes. 

4. Rs.17,500 per sq.mtr if buyer has paid the same consideration to X or paid tax on difference of 17,500 and 4,500 sq.mtr u/s 56.

5. Section 50C, Section 54F, 54EC is applicable to seller. Section 56 is applicable to buyer. For case laws, you can use search engine google.

6. Sale consideration should be atleast equal to circle rate i.e. Rs.17,500 sq.mtr. Receiving cash more than Rs. 2 lacs will attract equivalent penalty. If the market rate is genuinely less than the circle rate and supported by valuation report then market rate can be considered. As the land is near jewar airport, possibility of market rate less than circle rate is negligible. 

- As I am occupied in assignments it is difficult to cover all aspects in a single reply. It is advisable to take phone consultation.