Tag: Capital Gains Tax Exemption

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ITAT Grants Capital Gains Tax Exemption for In-Law Property

MUMBAI: In a landmark decision regarding capital gains tax exemptions, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled that buying a residential property from close relatives should not be categorized as a sham transaction solely due to the tax advantages it may offer. The tribunal granted a ₹41.5 crore exemption under Section 54F to an individual who purchased a flat from her in-laws, overturning the tax department’s assertion that the transaction was merely a facade. Section 54F permits individuals to exempt long-term capital gains from the sale of any asset, other than a residential house, provided…

Latest StoriesRegulatory

Redeveloped Flat Exempt from ‘Other Income’ Tax: ITAT

MUMBAI: The Income Tax Appellate Tribunal (ITAT) in Mumbai has favored a taxpayer who received a flat valued at ₹11.7 crore as part of a redevelopment project in exchange for surrendering his tenancy rights. ITAT determined that the surrender of tenancy rights constituted the transfer of a capital asset, qualifying taxpayer V Asher for an exemption under Section 54F of the Income Tax Act. The tribunal also stated that the flat’s value should not be taxed as ‘Income from other sources.’ During the review of Asher’s 2019-20 tax return, the I-T officer questioned the legitimacy of the tenancy arrangement. Consequently,…