13 March 2008
I had an old house which has been taken over by builder. To compensate the same he is paying certain amount of money and also the flat in the new building after demolishing the old building. In this case I would is the money received liable to capital gain?.
14 March 2008
You have not given the complete facts. From the above, it appears that you have transferred the ownership of old house to Builder than yes there will be capital gain tax.
However, if the ownership remains with you and money received is only compensation for handing over the old house for some day till the new building constructed than it will be Rent receipt which is also chargeable to tax.
If you can give compelte details of transaction than there will be more clarity
14 March 2008
it seems to me that u have transferred the property to a builder - otherwise he cannot demolish it -if that is true u shall pay capital gains tax probably your case can be a joint development - in that case u can retain possession and ownership by agreement OR u can transfer possession and pay tax now itself whichever seems profitable
CAclubindia
