Sir,

It would be really great if you could address my below issues:

Facts are below:

PART-1

• Society goes for redevelopment and enters into a Development agreement in Feb 2013 (Registered agr with Stamp duty paid) with the developer. The existing old flats are all prior to 2001 and old.
• In April 2014, the developer enters into an agreement with each member for Agreement for Permanent alternative accommodation (Registered agr with Stamp duty paid) and member has to hand over their flats to the developer in 25th april 2014. (normal compensations of allowances, rent etc are all given)
• The New flats /Building is complete and completion certificate (CC) is given in 14th April 2017
• Query 1: What is the capital gains for Mr.X.
• Will the timing of declaring capital gains be the  Develop agr date of Feb 2013 (FY 12-13) OR handover date 25th april 2014 (FY 14-15). OR will it be the date when the CC is given of 14th April 2017 (FY 17-18)
• (NOTE:This is a normal case of Redevelopment by society and members get 25% extra area in the new flat)…..
• I have been reading different views ..one where Section 45(5A) talks of taking the date of possession of new flat (FY17-18) as deemed date in case of Joint development agr………and other views considering the transfer which is Dev. agr date (FY 12-13) or actual handover by member Mr. X to developer which is Apr 14 (FY 14-15)……..
• Also, to arrive at deemed sale value, we would have to do the valuation on the above dates, wherever applicable, is that right? Stamp duty has been paid on each of the above agreements, so instead of valuation, can we consider the stamp duty valuation?
• PART-2:
• Further, this new flat was gifted (Regd. Gift Deed) by Mr. X to his daughter & Wife in Mar 2022.  Wife Expired in Jun 2024 recently. Hence, for his share he received on the demise of his wife, he made a Release deed (registered) on July 2024 in favour of this daughter without consideration.
• The daughters now becomes 100% owner of the flat…..and sold the flat in Oct 2024.
•  Query 2: What will be the cap. gains for her?…..Correct me if i am wrong:……
• For the daughter, it will be sale value Less: Cost which is the Cost to Prev. owner (Mr. X). This cost would be the receipt of the new flat which is the CC date 14th April 2017 (FY 17-18). FMV Valuation of the same to be taken and considered. Even if the stamp duty on this date is less, we can consider the FMV itself since, the provision of not exceeding the stamp duty value is for 2001 valuation (isn’t that)
• moreover, LTCG is considered since holding period of the previous owner is more than 2 yrs. So, by that Logic, we have ascertained Cost and holding period also..
• Query 3:  Correct me if i am wrong:  Whether it is gift deed OR Release Deed, the principal of Cost and Holding period of Previous owner would apply. Release deed would also be treated as gift since it is without consideration.

• Query 4: Will it make a difference if Mr. X has not filed his returns at all and not declared any capital gains or any other income. Being Senior citizen, very low income. Daughters are taking care. And also, Cap. gains he assumed was NIL because of 54 exemption of new flat

Thanks so much in advance. Do let me know if you need any further clarification. My email is below.