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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 6 2025 12:00AM

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