Consideration received for sale of tdr certificate

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Nagaraj (Querist)
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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

Amol S Joglekar (Expert)
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20 April 2019 it is capital gain. It shall be taxed under capital gains

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Nagaraj

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

Amol S Joglekar

Amol S Joglekar (Expert)
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23 April 2019 No. Sec. 50C is applicable to land or building or both.
TDR does not fall in that

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Nagaraj

Nagaraj (Querist)
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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

Amol S Joglekar (Expert)
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23 April 2019 you can tell them that sec 50C is not applicable to TDR

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Nagaraj

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

Amol S Joglekar

Amol S Joglekar (Expert)
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24 April 2019 you are most welcome

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