Upgrad LLM

capital gain on home on mumbai pagdi system

My grandfather shifted to Mumbai somewhere in 1952. He purchased 3 adjacent rooms (one at a time) in a chawl in Khar, Mumbai.

These rooms were bought at different times and at different cost. There is no buy agreement / paperworl for money given to seller.

My family has been living in this chawl ever since and now want to sell it out. The 3 rooms are in 2 different names now. (2 in my mothers and 1 in my aunts)

What would be the tax liability on the amount my mother and aunt get by selling this property.

How do we factor in the name change cost / NOC cost taken by landlord?

Thanks in advance.


If the said rooms are on pagadi   and you are paying rent to land owners then for transfer of  name in name of new tenant and for surrender of your tenancy right the amount which is received is taxable  under head capital gain as per I T Act  . if there ie no documents for purchase of tenancy right  then such cost will be deemed to be nil and you are liable for capital gain on entire amount you get . how ever if you purchase a new house or invest in specified scheme  then entire capital gain is exempted us 54 or 54F of I T act


I have a similar situation. My father purchased a flat in Dadar area more than 30 years ago. There is no evidence of cost/purchase or buy agreement. I sold/transferred tenancy rights of the flat in Dec-2017. Is there a way indexation, fair market value of the flat can be done? What about 1-Apr-2001 law, is that not applicable for pagdi flat?




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