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Landowner Sells TDRs for Rs 6 Crore; Taxed as Capital Gains
A landowner who surrendered land for road widening received Transferable Development Rights (TDRs) worth Rs 6 crore. The ITAT ruled these proceeds taxable as capital gains.
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What Happened?
A landowner who surrendered land for road widening received Transferable Development Rights (TDRs) worth Rs 6 crore. The ITAT ruled these proceeds taxable as capital gains.
AI Quick Summary
A landowner sold TDRs for Rs 6 crore after surrendering land for road widening, but the ITAT ruled the proceeds taxable as capital gains.
Key points
- The landowner surrendered 2,839 square meters for road widening.
- He received TDRs and sold them for Rs 6 crore.
- The Income Tax Department claimed the proceeds were taxable.
- The ITAT ruled the sale of TDRs is taxable as capital gains.
- The tribunal allowed deduction for the cost of the surrendered land.
Key insights
- The ruling may influence future transactions involving TDRs.
- Landowners must consider tax implications when surrendering land.
- The ITAT's decision reinforces the taxability of TDR proceeds.
Why it matters
This ruling clarifies tax implications for landowners receiving TDRs in exchange for land.
Tags
Entities
Bruhat Bengaluru Mahanagara Palike· OrganizationIncome Tax Appellate Tribunal· OrganizationBengaluru· City
Source
Times of India
