| Question And Answer | |
|---|---|
| Subject: | Whether surrender of tenanted flat for redevelopment is liable to capital gains tax ? |
| Category: | Income-Tax |
| Querist: | BS |
| Answered by: | Advocate Rahul Hakani |
| Tags: | Capital Gains, surrender of tenancy rights |
| Date: | May 15, 2021 |
What is the date of transfer , when a tenanted flat is surrendered for redevelopment to a builder as per agreement of Permanent Alternative Accommodation ? Is this transfer liable to capital gain ?
Yes, surrender of tenancy will be liable to Capital Gains. If tenancy rights come to an end upon executing the PAA Agreement then the date of Agreement will be the Year of transfer. If tenancy continues till the handing-over of redeveloped flat then year of receipt of new Flat will be the date of transfer.
Note :
The assessee will get the benefit of section 54F subject to other conditions
Dr.K. Shivaram Senior Advocate
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