Capital gains on goodwill money for property development

P V VAITHYANATHAN (Querist) 11 February 2015 This query is : Resolved
I am 70 years old and residing in Chennai. I had an old flat originally purchased by me from Housing Board in 1980.

Recently the owners of our flat decided to go in for a joint development of our property with a contractor. Each flat owner has now received a lumpsum as goodwill money from the contractor, in addition to a new flat at the same premises where the old property stood.

Please let me know whether this goodwill money is taxable in any way. If so, how the tax would be assessed and how to avoid or minimise the same?

Appreciate your valuable advices. Thanks.

Follow Query

Report Abuse

Guest (Expert) 11 February 2015
Dear Sir,You being a senior person Please Contact the CA Club of the same Forum whose E Mail ID is just below in this same Thread For a Practical and Real Advise from Professional CAs Please .

P. Venu

(Expert) 11 February 2015
Prima facie, goodwill money constitute capital gain. However, you may consult CA Club for more informed opinion, as suggested by learned expert Shri Rajkumar.

Rajendra K Goyal (Expert) 11 February 2015
Consult local tax consultant.

ajay sethi (Expert) 11 February 2015
raise query in CAclubindia.com

Dr J C Vashista (Expert) 11 February 2015
I agree with experts, consult CA Club.

T. Kalaiselvan, Advocate (Expert) 12 February 2015
The money received as good will is not doubt capital gain but the taxable and other aspects can be clarified from your auditor or a tax consultant.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now