Capital gain on transfer of tanancy rights...
This query is : Resolved
CA Arpita Shah
(Querist)
19 April 2013
One of My client's Shop(Which was on Paghdi System) went for redevelopment. Now Builder is Offering New shop on Ownership Basis without any consideration.
As per Definition of Transfer, Transfer of Tenancy right will be considered as transfer.So my entire agreement value will be capital gain.
Now my question is from which date i need to Invest to claim exemption u/s 54F ---- from date of Agreement or From date of Possession???
Date of Agreement : 01/03/2013
Date of Possession : December 2014
As per Definition of Transfer, Transfer of Tenancy right will be considered as transfer.So my entire agreement value will be capital gain.
Now my question is from which date i need to Invest to claim exemption u/s 54F ---- from date of Agreement or From date of Possession???
Date of Agreement : 01/03/2013
Date of Possession : December 2014
19 April 2013
Dear Arpita,
According to me, in my opinion, no capital gain arises, since there is no consideration that you are receiving.
and it is not the TDS that you are transferring the TDR is being transferred by the society. so, for you it is like hiring a contracter and asking him to reconstruct your building.
- Ankit
According to me, in my opinion, no capital gain arises, since there is no consideration that you are receiving.
and it is not the TDS that you are transferring the TDR is being transferred by the society. so, for you it is like hiring a contracter and asking him to reconstruct your building.
- Ankit
CA Arpita Shah
(Querist)
19 April 2013
Thanks Ankit
My client surrendering his tenancy rights & in lieu of it He is getting shop on onwership basis.
Further Shop was of 289Sq Ft....but In new building He is getting shop of 289sq ft + 170 sq Ft Basement.
My client surrendering his tenancy rights & in lieu of it He is getting shop on onwership basis.
Further Shop was of 289Sq Ft....but In new building He is getting shop of 289sq ft + 170 sq Ft Basement.
19 April 2013
You are welcome Arpita,
yes then in this case it will be CG.
then the date of transfer of the asset will be the date of transfer of the rights to the builder. so, the time limit has to be calculated from the date of agreement and trf of the rights.
since, it will be like the asset was sold off and then a new under construction property was purchased.
yes then in this case it will be CG.
then the date of transfer of the asset will be the date of transfer of the rights to the builder. so, the time limit has to be calculated from the date of agreement and trf of the rights.
since, it will be like the asset was sold off and then a new under construction property was purchased.
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CA Arpita Shah
(Querist)
19 April 2013
ok thanks
So He need to Invest before filling ROI... or else need to deposit that amount in Specified bank accounts... right?
So He need to Invest before filling ROI... or else need to deposit that amount in Specified bank accounts... right?
19 April 2013
yes....ofcourse you are right...it has to be invested in the special bank account or invested in a property.
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