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Tax on corpus fund

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(Querist)
10 July 2017 Hello, I am a tenant surrendering my tenancy rights to a developer in Mumbai and in lieu of the same I am receiving Permanent Alternate Accommodation (residential) in the same area. I would like to know if there will be any capital gains tax on the same. Also the builder is paying me compensation (Corpus Fund). Will I be liable to pay taxes on the corpus fund? Thanks in advance.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
10 July 2017 There will be no capital gains tax on the Permanent Alternate Accommodation and long term capital gains tax at 20% applicable on the corpus fund.
Tax can be avoided if corpus fund is deposited in 54EA bonds for 3 years.
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Rahul Lakhani

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Rahul Lakhani (Querist)
10 July 2017 Thank you for your reply Mr. Seetharaman. Isn't the Section 54(F) allow me to get no capital gain tax on the Permanent Alternate Accommodation?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
10 July 2017 See my modified reply. No capital gain tax on the Permanent Alternate Accommodation
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