Capital gains

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Padmini Changediya (Querist)
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24 August 2015 My mother is giving her long term owned house for reconstruction. She would be getting one flat in the new apartment and some cash over and above that. How would the cash be taxed in her return?

Amol S Joglekar

Amol S Joglekar (Expert)
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24 August 2015 You need to compute the capital gain as on the date of transfer..(Transfer includes Reconstruction)
The consideration for the reconstruction would be cash + Fair Market Value of the flat that she is going to get.
Deduct Indexed cost of acquisition of the existing house.
You need to check if sec 54 condition is satisfied.

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