Capital gainTax on Redeveloping flat in Hsg Soc.

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  1. Vijay Godbole.

    Vijay Godbole. New Member

    I am a Co op Soc member. Our Soc is being redeveloped soon . I hold the flat of 540 Sq. Ft here since 1975. After redevelopment I have an option -
    1)to get a flat nearly of 200 Sq Ft. more area (Carpet area) and a Corpus amount plus amount for surrendering some Carpet area to developer totaling to nearly Rs. 45 lac OR
    2) To get a flat of nearly 900 Sq Ft area with a Corpus of Rs 6 Lac.

    The corpus amount in both the cases will be given by the developer in 3 installments of 20%, 30%, and lastly 50% at the time of occupation - approx one in each year.

    My questions are -
    1) How the capital gain tax liability is to be calculated on each option ?
    2) What will be the amount of capital gain tax liability as per the latest rules , regulations etc of I. Tax ?
    3) The saved part of rent amount to be given by the developer to the each member comes under Capital gains tax OR under regular Income Tax liability of the member ?
  2. rudrabose

    rudrabose Active Member

    1. Only the amount received by you in cash would be taxed as Capital Gains

    2. The rent received would also be taxed as Capital Gains.
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