Capital gain over sale of ownership flat against purchase of pagdi flat

Dear Sir,

Yes, there will be a capital gain tax liability.

However, you can the benefit of exemption under section 54.

Hi,

As per Income Tax act, you need to purchase a house property to claim exemption.

The income tax doesn't have any particular clause regarding property purchased under pagdi system.

Therefore in my opinion, you can purchase flat in pagri system and claim benefit u/s 54.

Hope this resolves your queries.

Regards,

Siddhant Shah

Dear Sir,

Hope you are doing well !!

On sale of property, capital gains are taxable.

LTCG is taxable@20%. However, if LTCG amount is reinvested into residential house property, there is an exemption from capital gains u/s 54.

Income tax act is not specified about purchase a flat in pagdi system building.

So, you will be able to claim exemption against purchase a flat in pagdi system building.

Thanks & Regards,

Payal Chhajed

Hi

Yes it can be done..there is nothing to do with pagdi system in income tax.

Transaction will be reported like any other sale transaction and capital gain to be Paid on it.

Exemption can also be claimed in similar manner.

Hope it helps

Exemption is available on ownership of own house and not tenancy rights. It will be a litigation case if exemption is claimed on buying pagdi rights.  Also, note that in the past this exemption has been denied on pagdi rights

Yes you need to pay capital gain tax on it.

No if you are investing in another residential property you can claim it as exemption as in the act there is no specific denial for pagdi system of flat.

Hi

No. You can claim capital gain exemption under section 54. This is a litigative topic. However, most rulings are in favor.