Capital gains

Vivek (Querist) 30 March 2015 This query is : Resolved
I am a residential tenant of a flat since 1-4-2013.

My building is going in for redevelopment,and once completed I will be given ownership flat within 3 years from vacating.

Till then I will be given an allowance towards rent for temporary accomodation.

The agreeement for the new flat will be registered by 31-7-15 before I vacate my tenanted premises.

I will vacate my premises by 31-8-15.

My query is : Will this be a short term capital gain or long term capital gain ?

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Anirudh (Expert) 30 March 2015
Capital gains (whether long term or short term) will be applicable only when a owner of an immovable property transfers the immovable property.

You are only a tenant and not a owner of the property, therefore where is the question of capital gains in your case? (Unless you have failed to indicate the correct facts)

Vivek (Querist) 30 March 2015
My flat currently is TENANCY basis and i will be getting flat on OWNERSHIP basis !
tenant is exchanging his tenancy for the new premises on ownership basis.... what will be counted as date of transfer

Anirudh (Expert) 31 March 2015
In the fact situation being revealed by you, there will be no incidence of capital gains in your hands.

It is only when you would be selling the property the question of capital gains will arise.

Vivek (Querist) 31 March 2015
Anirudh,

Under what section, provision do you say, that no incidence of capital gains.

thanks,

Anirudh (Expert) 31 March 2015
Forget about me.

You seem to think there is incidence of capital gains. Can you say under what provision?

You said that you are a tenant from 2013, but no where said that you have any "Tenancy right". Do you mean to say that you possess "Tenancy rights" (rather than a mere tenant)? Please be specific. That will change the whole situation.

Rajendra K Goyal (Expert) 01 April 2015
Consult your tax consultant and show him all relative documents.

Vivek (Querist) 02 April 2015
Anirudh,

I am a tenant who pays Rs.5000/- per month and fall under ambit of Maharashtra Rent control Act 1999. I have registered agreement for my tenancy.

I am not aware of difference between tenant and tenancy right ? Pls can you highlight the same , then I can reply to your query.

T. Kalaiselvan, Advocate Online

(Expert) 03 April 2015
How are you converting your tenancy into ownership of the the flat? Are you buying it on a flat rate ? or acquiring it by applying the tenancy rights? The tenant and tenancy rights are two different terms, you may consult a local lawyer to get proper idea of the theme involved in it.