A 20-year old house has two floors. If I sell each of the floors separately to two people, and also sell rights to a third person to build on the terrace (along with proportionate undivided ownership of land) - What would be the Tax treatment for each component of sale?
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Sale of rights in house- tax treatment
Replies (1)
Hi , I am of the opinion that each house will be treated as separate complete unit and this also has been judgement and capital gain will be computed separately for each floor and for the terrace it will be treated as extinguishment of right in an asset which is also a transfer as per the provision of section 2(47) and capital gain will be computed accordingly .
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