Income tax(LTCG / STCG)on compensation as TDR certificate

 It is said that monitory compensation received  to a person from Govt. or Munc.authorities for land acquistion is EXEMPT from Income Tax, as of now, due to paucity of funds , Govt.and Munc.authorities are giving TDR certificate ( fungible FSI)

wants to know

a) whether receipt of this TDR certificate instead of Monitory compensation isTax free ? or taxable.

if yes as LTCG / STCG ?

b ) If that person his sold  rights or TDR certificate  to other person? whether such amount will be taxable or not ? if yes , on what basis , diffrence between sale price and  base price ?( as on date he recived this TDR certificate from the authorities)

Replies (1)

" a) whether receipt of this TDR certificate instead of Monitory compensation isTax free ? or taxable.?

Very complicated issue....... when different courts have issued different judgements...... and no specific direction from  CBDT

Refer: 1. https://www.caclubindia.com/experts/capital-gains-of-sale-of-tdr-266485.asp

2. capital_gains_on_transfer_of_development_rights

3.  tax-treatment-respect-receipt-transfer-sale-development

4. TDRS+A+New+Misery+For+Builders

5.  feature/union-budget-2018/news

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