-
Apr 18, 2025
-
Big relief for flat owners: No income tax payable if you get a new flat in exchange for old, rules Mumbai ITAT
If you own a society flat that is scheduled to undergo redevelopment by the builder or developer and get an offer to exchange the older one with a new accommodation, you won’t have to pay any income tax on it.
In a recent judgement, the Mumbai Income Tax Appellate Tribunal (ITAT) ruled that such an exchange cannot be taxed under Section 56 of the Income Tax Act. Section 56 of the Income Tax Act deals with income under the head of “income from other sources.”
The bench members B R Baskaran (accountant member) and Sandeep Gosain (judicial member) of the Mumbai ITAT said that giving up rights in the old flat to get a new one is not considered taxable income, as it doesn’t count as receiving a property for less than its value.
|