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Ltcg on transfer of right for redevelopment to builder


Imran H Mansuri (Inter CA)     20 February 2016

Imran H Mansuri
Inter CA 
 1 likes  153 points

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Dear Sir,

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 ?

Thnaking You.

Lalit

Lalit (Bikaner)     20 February 2016

Lalit
Bikaner 
 2 likes  52 points

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Yes, market value as on 01-04-1981 can be taken as cost of assets

1 Like
Shivani Mittal

Shivani Mittal (Practice)     20 February 2016

Shivani Mittal
Practice 
 47 likes  425 points

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What was the cost of transfer of ownership ?

Imran H Mansuri

Imran H Mansuri (Inter CA)     20 February 2016

Imran H Mansuri
Inter CA 
 1 likes  153 points

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Its just the Nominal Charges paid at BMC office.

Say for Ex. only registration charges.

Imran H Mansuri

Imran H Mansuri (Inter CA)     22 February 2016

Imran H Mansuri
Inter CA 
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Market Value as on 01.04.1981 will be cost to the Assessee.

Can anybody confirm this ?

Shivani Mittal

Shivani Mittal (Practice)     23 February 2016

Shivani Mittal
Practice 
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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.


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