Question And Answer
Subject: Whether surrender of tenanted flat for redevelopment is liable to capital gains tax ?
Querist: BS
Answered by:
Tags: ,
Date: May 15, 2021
Query asked by BS

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 ?

File Uploaded: Not Available

Answer given by

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

Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of

Leave a Reply

Your email address will not be published. Required fields are marked *