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Tax on land given as gift

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This query is : Resolved

Amit Kumar Mukim (Querist)
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09 September 2019 I had purchased a Multi storied building in the Year 1998 at a cost of Rs. 4 Lakh. In ground floor of the building there where shops which where rented. Since the last 20 years a court case has been running with one of the tenants.
now i have come on settlement terms with the tenant. i will demolish the building and construct a semi commercial multi storied building in which i will give a shop to the tenant on ownership at free of the cost. but the FMV of the portion which i will be giving is nearly Rs. 42 Lakh. What will be the tax implication on this.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 September 2019 On surrendering tenancy Rights the person is getting shop worth of 42 lacs. So the entire 42 lacs will be considered as capital gain and 20% tax payable on it.

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