ITAT Bangalore rules TDR sale taxable as capital gains
In short
A landowner gave up 2,839 sq. metres of land for road widening and got TDRs in return. Those TDRs were later sold to a builder for Rs 6 crore.
ITAT Bangalore said the sale is taxable as capital gains. The story does not say the final tax bill or whether the decision will be challenged.
What the reporting says
A landowner who received TDRs for giving up 2,839 sq. metres of land for road widening and sold them for Rs 6 crore was told by ITAT Bangalore that the TDR sale attracts capital gains tax. The case followed an Income Tax Department notice after the sale to a builder. The reporting does not state the final tax amount or whether the taxpayer will appeal.
Why it matters
The reported case involves a landowner who received TDRs after giving up 2,839 sq. metres of land for road widening and later sold those rights for Rs 6 crore. ITAT Bangalore ruled that the sale attracts capital gains tax, after an Income Tax Department notice. The reporting does not provide the assessed tax, the year of sale, or whether the ruling is final after appeal.