Consideration received for sale of tdr certificate

20 April 2019
Dear Experts,

Land land surrender land to Government for that Government issued TDR(Transferrable Development Rights) certificate. Land lord sold TDR certificate and received consideration from builder. What is the Tax implication?

1. Is it capaital gain tax or not?
2. Is it capital receipt not taxable?

Amol S Joglekar (Expert)

Click to Talk 20 April 2019
it is capital gain. It shall be taxed under capital gains

Nagaraj (Querist)
22 April 2019
Sec 50C applibale for sale of TDR certificate?

Amol S Joglekar (Expert)

Click to Talk 23 April 2019
No. Sec. 50C is applicable to land or building or both.
TDR does not fall in that

Nagaraj (Querist)
23 April 2019
TDR certificate sell at lesser consideration but Stamp duty will pay on TDR value. TDR value is more but sale agreement value is less.. what stand can we take when we receive notice from IT department saying pay tax on registered value. Only for this reason I raised about section 50C.
Can you please help me on this

Amol S Joglekar (Expert)

Click to Talk 23 April 2019
you can tell them that sec 50C is not applicable to TDR

Nagaraj (Querist)
23 April 2019
Thanks for u r clarification.

Amol S Joglekar (Expert)

Click to Talk 24 April 2019
you are most welcome

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