| Question And Answer | |
|---|---|
| Subject: | sale of redevelopment flat. |
| Category: | Income-Tax |
| Querist: | Mayur Makwana |
| Answered by: | Law Intern |
| Tags: | Capital Gains, redevelopment |
| Date: | March 22, 2026 |
We bought flat in 1980. The same has gone for redevelopment in 2018. Possession given in 2025 with 35% extra area in lieu of old area.
Now i want to sell this redeveloped flat.
What will be taxability?
The period of holding of the new flat will commence from 2018 and so it is a long term capital asset. The cost of acquisition will be the FMV as of the date of redevelopment agreement in 2018.
The difference between the sale consideration and the said FMV less expenses will be the LTCG.
You have the choice of paying either 12.5% of the LTCG without indexation or 20% with indexation.
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 itatonline.org 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 itatonline.org