Question ID :
44907
Taxability of Sale of Transferabel Development Rights (TDR)
We have a case of assessee in which Land Developer purchased in July 2024 for a monetary consideration of Rs.2 Crores TDR, which was issued by Municipal Corporation to the assessee in lieu of a portion of his land reserved for Coastal Road project during July 2024. Whether capital gain will be attracted in this case to the client? If long term, then whether indexation will be available? For Indexation can holding period of Land be considered to decide whether Short Term or Long Term? And also whether exemptions u/s 54F, 54B, 54EC will be available? Please provide valuable inputs....
Posted by
CA Ravish Thakur
on
Aug 06, 2025
Filed Under
Capital Gains
Answer ID :
85983
Transfer of TDR is taxable as capital gain. The cost of acquisition is Nil when no actual cost was incurred. The period of holding is from the date of allotment of TDR. It could be short term or long term based on period of holding.
Posted by
SUBRAMANI V K on
Aug 06, 2025