Capital gains on goodwill money for property development
This query is : Resolved
11 February 2015
I am 70 years old and residing in Chennai. I had an old flat originally purchased by me from Housing Board in 1980.
Recently the owners of our flat decided to go in for a joint development of our property with a contractor. Each flat owner has now received a lumpsum as goodwill money from the contractor, in addition to a new flat at the same premises where the old property stood.
Please let me know whether this goodwill money is taxable in any way. If so, how the tax would be assessed and how to avoid or minimise the same?
Appreciate your valuable advices. Thanks.
Recently the owners of our flat decided to go in for a joint development of our property with a contractor. Each flat owner has now received a lumpsum as goodwill money from the contractor, in addition to a new flat at the same premises where the old property stood.
Please let me know whether this goodwill money is taxable in any way. If so, how the tax would be assessed and how to avoid or minimise the same?
Appreciate your valuable advices. Thanks.
11 February 2015
This money is taxable under capital gain. You can invest the same in 54EC investments so as avail the benefits of capital gain exemption.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- Short Term Capital gain on shares bought and sold after 2018 onwards
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Share accounting-->fifo - capital gain - period as per fifo?
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 2 Short Term gain & Long term gain
- ITR returnFY25-26
- ITR selection for salaries and capital gain less than L
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
