Tax on corpus fund
This query is : Resolved
Rahul Lakhani
(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.
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.
Tax can be avoided if corpus fund is deposited in 54EA bonds for 3 years.
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?
CA R SEETHARAMAN
(Expert)
10 July 2017
See my modified reply. No capital gain tax on the Permanent Alternate Accommodation
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