Redevelopment of Propertry
This query is : Resolved
07 April 2022
Hello
Property purchased in 1990
Went under redevelopment in Jan 2022
Assuming we will receive the OC in 2024
Case no. 1- In the year 2021-22 – No capital gain tax
Case no. 2 - In the year 2024-25 – again no capital gain tax as redeveloped property is received within 3 years.
Case no. 3 - So now only capital gain will be taxable in the year in which the redeveloped property is sold.
In case no. 3- Cost of Acquisition will be indexed cost of purchase taking base year as 2001 till 2022.
Am I right?
Property purchased in 1990
Went under redevelopment in Jan 2022
Assuming we will receive the OC in 2024
Case no. 1- In the year 2021-22 – No capital gain tax
Case no. 2 - In the year 2024-25 – again no capital gain tax as redeveloped property is received within 3 years.
Case no. 3 - So now only capital gain will be taxable in the year in which the redeveloped property is sold.
In case no. 3- Cost of Acquisition will be indexed cost of purchase taking base year as 2001 till 2022.
Am I right?
07 April 2022
Yes, you are right, indexation done upto the year of sale.
No time limit for redevelopment of property.
No time limit for redevelopment of property.
08 April 2022
Are you considering Getting new flat against old flat as sale of Capital Goods? Or are your selling the same property once it's developed?
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