Question ID : 280

TAXATION UNDER CAPITAL GAINS - DEVELOPMENT OF RESIDENTIAL PROPERTY

There have been several doubts over Capital gas taxation respect of an assessee givg his,her rential property for development. My query is as under:
An assessee havg a rential property, enters to a development agreement with a builder for construction of rential fts. Is it correct?: The value of fts allotted to the assessee is taken as deemed value of sale conration of his,her property, wherefrom dexed Cost of acquisition, Exemption U,ss. 54 and 54EC are cimed. The ed query here is, if the assessee as more than one ft for himself, still can he cim exemption U,s. 54 for more than one ft. The anology is that if an assessee s,constructs a rential property as per Sec. 54, consistg of more than one portion or unit, he,she is very much entiltled to exemption U,s. 54. Then why not the assessee can cim if he,she is allotted more than one ft the same buildg? Kdly enlighten me over the subject.
Thankg the stitute for givg an excellent opportunity of teractg with the members.
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