14 January 2020
Assessee is a flat owner in a society, society is in redevelopment. Assessee is to receive new flat with additional area of say 500 sq feet against old flat. out of additional area of 500 Sq feet , Rights on area of 200 sq feet is relinquished to developer against a consideration. Taxability of such consideration ??
15 January 2020
As I understand from your contention....existing 1000 sq ft flat under redevelopement, getting new flat of 1300 sq ft + consideration for 200 sq ft. Right? It is taxable capital gain. Exemption u/s 54 is available, subject to however the conditions of 2/3 years
15 January 2020
You understood situation Rightly.. Now if i don't reinvest amount recd against sale of 200 sq feet, it will be taxable? Cost of acquisition would be?
15 January 2020
Assuming the cost of acquisition of flat 1000 sq ft is 15 lakh. You can take proportionate cost of relinquished area. i.e. 2 lakh as cost of acquisition.
CAclubindia
