Readers' Corner: Tax

The income shall be considered as taxable in the year in which the specified authority issues the certificate of completion for the whole project and not in the year of transfer of such land

I am giving my plot to a developer. He will construct a building on the land parcel and give me three flats in return. Will this transaction attract any tax?
 

As per Section 45(5A) of the Income-Tax Act, 1961, in case a person who owns a land agrees to allow another person to develop a real estate project on such land in consideration of a share (cash/building ), there would be a capital gain income in the hands of such individual transferring the land/land rights. However, the income shall be considered as taxable in the year in which the specified