My mother inherited my grandfather's old chawl type residence, which was developed by a trust, now the trust has given us possession of the Two flats in April 2019. Is my mother liable to STCG if she sells the flats she received from the trust, and simultaneously buy another flat in the same premises. Huzefa [deleted]. [deleted]
If will all depend on what is the cost price and sale price.
If your mother sells the residence as she receives it, it can be short term capital gain and then she cant get benefit of claiming exemption by investing in new house.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi
In case of short term capital gains, there's no exemption from capital gains if capital gains are reinvested.
However, the specific arrangements for development agreement and inheritance needs to be referred so as to decide how transaction has taken place and whether it would be a short term capital gain or long term.
Hello,
To verify whether the transaction would be LTCG or STCG, one needs to refer to the development agreement by the trust.
In case it is STCG, no exemption would be available for investment in another house property.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
Please share the copy of development agreement for appropriate consultancy.
However, there is no exemption available for short term capital gain.
