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Anil

Anil Rego  |377 Answers  |Ask -

Financial Planner - Answered on Jan 21, 2023

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Prasanna Question by Prasanna on Jan 10, 2023Hindi
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Dear Anil. In a city like Mumbai when a building goes for redevelopment the existing tenants either get another house for their existing homes or gets remunerated by the developer based on current market value. How is such remuneration taxed? Where can one find more information about such tax issues related to redevelopment scenarios? Regards

Ans: The Finance Act, 2017 inserted a new sub-section 5A in section 45. This deals with the capital gain in case of re-development of any land or building or both. This effectively breaks up the transaction into two parts-
1. Transfer out of share in property to the developer (Triggers capital gains)
2. Investment into the house provided by the developer.
If one chooses to cash out, you will need to pay capital gains based on (1) above. If there is an alternate property provided to you, this is treated as reinvestment under section 54. You need not need to pay tax if there is no cash payout to you as part of the redevelopment.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Dear Mihir. In a city like Mumbai when a building goes for redevelopment the existing tenants either get another house for their existing homes or gets remunerated by the developer based on current market value. How is such remuneration taxed? Where can one find more information about such tax issues related to redevelopment scenarios? Regards
Ans: As per the provision of the Income Tax Act, in case owner of residential property, transfer said building for the redevelopment project and because of said transfer, any capital gains arising to those individuals, such gains would be taxable in the year in which the competent authorities issue a certificate of completion for such project. However, in case where the said individual transfer his share in the redevelopment project i.e. transfer the building before the said completion certificate is issue, the capital gains shall be taxable in the year in which the transfer takes place and the above provision of the act would not be applicable.Therefore, if Mr. Prasanna D does not transfer his share in the redevelopment project till the date of issue of completion certificate, then the above provision of the act applied and tax required to be paid in the year when completion certificate is received. However, if Mr. Prasanna D get remunerated from developer it seems that Mr. Prasanna D selling his share in redevelopment project before issue of completion certificate and therefore the tax require to be paid in the year when he actually entered into the agreement with developer.And for the purpose of calculation of capital gains, the stamp duty value (SDV) of the building as on date of issue of completion certificate, pertaining to the owner’s share in the redevelopment project or any remuneration received shall be taken into account and tax require to be paid on such gain arising to Mr. Prasanna D.

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Asked by Anonymous - Jan 06, 2025Hindi
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Me married from last 5years. But from last 10months me and my wife having disputes. Any reason
Ans: One possibility is communication breakdown. Over time, couples may fall into patterns where they no longer communicate as openly or effectively as they once did. Misunderstandings, unmet expectations, or unspoken feelings can lead to tension and disputes. It’s important to reflect on whether you both are expressing your thoughts and emotions clearly and listening to each other with empathy.

Another potential factor could be unmet needs or changes in individual priorities. As people grow and evolve, their needs, desires, and priorities may shift. If these changes are not acknowledged or discussed, it can create friction. Consider whether you or your wife feel that certain emotional, physical, or practical needs are not being met.

Stress from external factors, such as work, finances, or family issues, can also spill over into the relationship. If either of you is experiencing significant stress, it might contribute to increased irritability or conflict. Identifying these stressors and finding ways to manage them together can be helpful.

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Ans: take a moment to appreciate where you are in life. Living with your parents can be a sign of strong family bonds, and it's okay to lean on that support. Remember, everyone’s journey is different, and there is no one-size-fits-all timeline for life events like marriage or starting a family.

Feeling lost might stem from comparing your path to others or societal norms. Try to shift the focus inward and reflect on what truly matters to you. What are your values, desires, and goals? Understanding yourself more deeply can guide you towards decisions that align with your true self, rather than external pressures.

If the idea of an arranged marriage feels like the only option, it might help to think about what kind of partnership you envision. Is there room to explore relationships in a way that feels authentic and comfortable for you? Perhaps consider expanding your social circles, trying new activities, or even seeking professional help to navigate these feelings and options.

Anxiety about being single can often stem from fears of the future. Practicing mindfulness and staying present can help manage these feelings. Focus on the aspects of life you can control and find joy in the present moments. Engage in activities that bring you happiness and fulfillment.

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