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Taxability - Society under redevelopment

This query is : Resolved 

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 ??

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

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?

Reference of case law or section ?

The mount received is taxable.

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.

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