we have a bungalow.
we r going to enter into agreement with builder for sale of conveyance deed to construct it again.
will exemption under sec54 be available since we are not receiving any money against the sale of our land but we r going to receive flats in that new bungalow.
agreement is not for redevelopment but for sale .
bungalow will be divided into 6 owners and seperate purchase agreement will be entered.
6 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 07 April 2021
No it is not capital gains
Ankit Neema
(2742 Points)
Replied 08 April 2021
I think you are talking about ratio deal. Am I Right sir?
if yes then capital gain may arise as against consideration you will receive flats.
if yes then capital gain may arise as against consideration you will receive flats.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 08 April 2021
If flats are being received then capital gains arise by calculating the Fair Market Value as on date of agreement as sales consideration and by effecting indexed cost of acquisition net LTCG arises
jaee sawant
(student)
(42 Points)
Replied 08 April 2021
Yes capital gains will arise since there is sale of conveyance deed.that is certain my question was regarding exemption?
i think exemption can be availed for one flat since it is as good as selling the flat nd purchasing new one
i think exemption can be availed for one flat since it is as good as selling the flat nd purchasing new one
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 09 April 2021
| Originally posted by : jaee sawant | ||
 |
we have a bungalow.we r going to enter into agreement with builder for sale of conveyance deed to construct it again.will exemption under sec54 be available since we are not receiving any money against the sale of our land but we r going to receive flats in that new bungalow.agreement is not for redevelopment but for sale .bungalow will be divided into 6 owners and seperate purchase agreement will be entered. |  |
As I understand, exemption u/s 54 can be availed (subject to satisfaction of relevant requirements u/s 54) because the value of flats that you receive will be considered as sale consideration.
For more on section 54: https://cleartax.in/s/section-54-capital-gains-exemption#amount
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