Imran H Mansuri (Inter CA) 20 February 2016
Assessee became owner of Residential Property which is taken on Lease for 54 Years (From 1950 to 2004) from Bombay Municipal Corporation(BMC). Now BMC transfers ownership in favour of Assessee few years back.
And Assessee transfer the right for Redevelopment in favour of Builder. Builder will pay 1 New Flat and Some Monetary consideration for it.
Now what shall be the cost of asset for Assessee while determining LTCG for Monetary Value received ?
Market Value as on 01.04.1981 can be considered as Cost of the asset for Indexation purporse ?
Shivani Mittal (Practice) 23 February 2016
In my opinion, its value will be the nominal charges paid to BMC as prior to transfer of ownership assessee was claiming rent paid as expense for the same.
I am not too sure about it. Let's wait for other expert comments.