Hi,
Tax status individual.Facts: planning to give property for redevelopment .Proposal-Existing structure to be demolished by the builder ,who will take wood,bricks etc from the demolished property. Area more than 2000sq mt(existing).I have inhertited the property.
I would like to know The tax implications if - I accept only a lump sum from the builder?
if builder gives a apartment as well as a sum of money.
Your capital gains liability is attracted only when you receive something from the builder. Since it is an inherited property, "cost to previous owner " clause comes into play and this CG will be the price of the flat you receive + sum of money received (-) cost of acquisition (indexed or not depending on whether it is LTCG or STCG and whether you are a resident or non resident).
Same holds good for lumpsum received.
Please note that your liability is attracted only when you receive the property and not when you merely hand over your property as Sec 53A of Transfer of Property Act is not attracted in this case. In case of lumpsum receipt, the date of receipt of money or registration whichever is earlier will determine the date of accrual of Capital Gains.
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