Collaboration agreement

AJAY (Querist) 06 January 2017 This query is : Resolved
Respected Sir/Madam

I have a query regarding collaboration.

One of my friend has a small house, purchased by him in 1990 , Now he wants to contruct his house upto four storey, but due to financial problem he is not able to construct his house and now he has approached a builder who is ready to construct his property upto four storey i.e. Ground Floor, First Floor, Third Floor and Fourth Floor.

After completion of the building , one floor will be given to builder and rest three floors will be given to owner , and once the building will be completed, the owner will execute the sale deed in favour of builder of one floor and give the possession of this floor.

If owner execute the Sale Deed in favour of builder.
the consideration amount will have show in the sale deed but he is not taking any amount from builder.

as per Circle rate the Sale Deed will execute for 20 lac

How will he show that he has not received 20 lacs and did not sell any property and he has transfered one floor to builder because the builder has constructed his property

what documents should be made in this regard, if he execute sale deed can it be possible without consideration

and should he pay the tax in this regard

Kindly suggest

Thanks

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