| Question And Answer | |
|---|---|
| Subject: | Tax clarity on sale of redeveloped flat – ltcg or stcg |
| Category: | Income-Tax |
| Querist: | Ajay Sinha |
| Answered by: | Reply of the Expert is awaited; |
| Tags: | capital gain |
| Date: | June 29, 2024 |
My parents had a small flat 250 sq ft carpet area. I got it from parents after the demise in 2017 as I am legal heir.
My only sister gave her release deed relinquishing her stake in March 2019.
Flat went for redevelopment in August 2019 based on the Permanent Alternate Accommodation Agreement.
During the redevelopment, I gifted the same under construction flat (before possession) to my wife in March 2022.
New flat possession received in March 2024 in wife’s name (484 carpet area).
Question: If wife sells it in june 2024, will it be LTCG or STCG?
When should wife sell for LTCG?
Mumbai based flat and it is ownership based and not pagdi.
Reply of the Expert is awaited. Please check back later
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Hi.
I have been owning a property in mumbai since 2014. The stamp duty value of this property during 2014 was 33 lakhs.
This property was given out for redevelopment during May 2022, the stamp duty was paid by the builder for 35 lakhs.
We got the occupancy during May 2024. We intend to sell the property during June 2025 for 1.5 Cr.
Whether this would be termed as STCG or LTCG ?And what would be the cost of acquisition ? And when should i do this transaction to get LTCG ?
Regards
Satish Prabhu
Please provide your inputs.
The redevelopment is a continuation of ownership of the same property. So, the period of holding and cost of acquisition will relate back to the old building. The asset is a long-term capital asset as it is held for more than 24 months.