| Question And Answer | |
|---|---|
| Subject: | commercial property —redevelopment |
| Category: | Income-Tax |
| Querist: | BS |
| Answered by: | Law Intern |
| Tags: | Capital Gains, redevelopment |
| Date: | April 30, 2025 |
when commercial property is recd on redevelopment of a commercial complex ;
1] what is tax effect if new area is same ? or more ?
2] what is tax effect if new shop is given in another building ?
In my view, if commercial property of the same area is recd in the same building on redevelopment of a commercial complex, it can be argued that there is no “transfer”. The cost of acquisition and holding period of the old property will be imputed to the new property.
If a larger area is received without payment of consideration, then the fair market value of the excess area may become taxable. The similar principle applies if the new property is received in another building as part of the redevelopment project.
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