How to compute Long Term Capital Gain on the grant of right to use TDR by the owner of a building?
Ans. At the outset, it is clarified that there is no authoritative pronouncement on this aspect. Different assessing authorities are taking different view as to taxability as well as computation of such gains. A cautious view which can be supported by reasoning, therefore, needs to be taken. At the outset, it is clarified that there is no authoritative pronouncement on this aspect. Different assessing authorities are taking different view as to taxability as well as computation of such gains. A cautious view which can be supported by reasoning, therefore, needs to be taken. For computation of capital gains, the questions that are relevant are — (i) period of holding of the capital asset (ii) computation of full value of consideration and (iii) cost of acquisition of capital asset The view can be taken that the concept of TDR in Mumbai came into existence w.e.f. 25-03-1991. Unless the land itself was acquired after this date, the rights came into existence on that date (i.e.25/3/1991).
How to compute Long Term Capital Gain on the grant of right to use TDR by the owner of a building? Q. 13. As a recipient of extra constructed area which has been retained by the members/ society and constructed by the developers, will a member of the society be liable to pay any stamp duty on either the extra constructed area, or on the entire newly re-constructed flat? As a recipient of extra constructed area which has been retained by the members/ society and constructed by the developers, will a member of the society be liable to pay any stamp duty on either the extra constructed area, or on the entire newly re-constructed flat? Q. 14. By any chance, will the society be required to pay any stamp duty towards the re-construction of the building? By any chance, will the society be required to pay any stamp duty towards the re-construction of the building? Q.15. How is Stamp Duty computed on Development Rights Agreement executed between the Society/Members and the Developers involving
