| Question And Answer | |
|---|---|
| Subject: | Urgent – Query on gifted flat and redevelopment thereof |
| Category: | Income-Tax |
| Querist: | Rayannsh Chauhan |
| Answered by: | Law Intern |
| Tags: | Capital Gains, redevelopment |
| Date: | September 29, 2025 |
Dear Sir/Madam,
Through a registered gift deed dated 04th August 2025, my mother has gifted her self acquired flat in Mumbai to me, basis of which I have become 100% owner now. She had originally purchased this flat in September 1993 out of her own funds.
The flat, originally measuring 355 sq ft, is under redevelopment stage and due to FSI benefit, the new flat to be allotted is for 472 sq ft. However, I have also opted to purchase an additional area of 23 sq ft in this flat, due to which I will receive the new flat measuring a total of 495 sq ft.
The developer has scheduled our PAAA registration next month in Oct 2025. I am required to make the payment towards this additional area of 23 sq ft along with the proportionate stamp duty charges thereof.
My query mentioned hereunder is from a long term capital gains tax perspective:
*** Keeping in mind that I am purchasing an extra area of 23 sq ft in this gifted flat, do I have to wait for 24 months and complete the holding period of 2 years before proceeding ahead with PAAA registration.
*** Should I defer my PAAA registration until August 2027 or can I go ahead with the PAAA registration since this flat was acquired by me as a way of gift and the original holding period is 32 years.
Kindly guide me for further course of action as I am very confused due to LTCG / STCG provisions.
Regards
Rayannsh
There is no need to defer the registration date as the property is held by you for more than 24 months and constitutes a long-term capital asset. The gains will be exempt u/s 54.
As regards the additional purchased portion of 23 sq ft, it is a fresh purchase from the developer and Section 45(5A) will not apply to it. Its holding period will start from October 2025. If you sell the entire flat before October 2027, this 23 sq ft will be Short-Term Capital Gains (STCG).
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