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Capital gain on sale of sra property

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Sanjay Panda

Manager

25 Points Posted on 01 January 2023

Would like to know if the property which comes under Slum Rehabilitation Authority scheme is sold after 10 years of lock in period, will it be taxable under capital gains? Hut bought in 1980, redevelopment done under sra scheme & flat allotted in 2010, The sale price is Rs. 40 lacs. The assessee is a senior citizen who is not liable to tax. If capital gains is payable, I would like to know what would be the cost of acquisition to be taken & how much capital gain tax will be payable?

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Quick Summary

This discussion explores the capital gains tax implications of selling a Slum Rehabilitation Authority (SRA) property after the 10-year lock-in period. It questions whether such a sale is taxable, particularly for a senior citizen who is not otherwise liable for tax. The conversation also delves into determining the cost of acquisition, considering the original hut purchase in 1980 and the redevelopment in 2010, and how to calculate the potential capital gains tax payable.