I own a flat in Mumbai in a building that went under redevelopment. The original carpet area of the flat was 318 sq ft. After redevelopment the builder has given me 100 sq. ft free of cost and I have purchased another 100 sq. ft from him. So now the total carpet area is 518 sq. ft. The agreement is also registered. I want to know what would be my tax liability and purchase value when I sell the flat?
# flat # Mumbai # redevelopment # carpet # builder # cost # agreement # registered # purchase # sell
Answered on November 08, 2017
Tax liability will arise on capital gains arising out of difference between sale consideration and purchase consideration. While the sale consideration will be proportionately divided by the area of the flat, the purchase value of your flat will be aggregate of the following:
1. For 318 sq. ft - original purchase value as per agreement.
2. For 100 sq. ft. received free of cost - NIL
3. For 100 sq. ft. additionally purchased- Price paid for purchase of additional area.
1. For 318 sq. ft - original purchase value as per agreement.
2. For 100 sq. ft. received free of cost - NIL
3. For 100 sq. ft. additionally purchased- Price paid for purchase of additional area.
