No tax for inheriting land and getting Rs 75L
Mr. Jain inherited leasehold land in Delhi in 1997 and converted it into a freehold property. In 1999, he tore down the existing single-storey house and rebuilt it, retaining rights to the basement, ground floor, second floor, and open terrace. In 2018, he sold the first floor to three owners and redeveloped the property, retaining ownership of the basement, ground floor, and third floor.
He received Rs 75 lakh for the redevelopment and claimed Section 54 LTCG tax exemption for the basement, ground floor, and third floor. The ITAT Delhi ruled that Jain was not acquiring multiple residential houses and allowed him to claim the tax exemption.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
