Introduction:
This article is a continuation to our article in previous edition. In the previous article, we took up to deal the tax implications on development of plots, wherein, we have identified four transactions which are common to any development agreement:
Transaction I - Transfer of Development Rights (TDR) by landowner to developer
Transaction II - Construction Services provided by developer to landowner
Transaction III - Sale of Plots allotted to his share by developer
Transaction IV - Sale of Plots allotted to his shared by landowner
The tax implications on Transaction I and Transaction II are dealt in the previous article. Now, in this article, we wish to deal with tax implications on Transaction III and Transaction IV and conclude with our comments.