JCT Associates Pvt. Ltd.

Long-Term Capital Gain (LTCG) Tax Optimisation

Lawful Tax Planning for Redevelopment Benefits

Redevelopment of a housing society may trigger Long-Term Capital Gain (LTCG) Tax implications for individual members, especially where additional area, corpus fund, or monetary compensation is involved. With proper planning and timely guidance, LTCG liability can be legally minimised or optimised in accordance with Income Tax laws.

Our LTCG Tax Optimisation Service helps societies and members understand, plan, and manage capital gains tax arising from redevelopment transactions.

Purpose of LTCG Tax Optimisation

• To identify long term capital gain exposure in redevelopment

• To explore lawful tax exemptions and deductions

• To minimise tax liability through proper structuring

• To ensure compliance with Income Tax provisions

Scope of Our Services

1. Understanding Redevelopment-Related Long Term Capital Gains

We explain tax treatment related to:

• Surrender of existing flat for redevelopment

• Additional area received in new premises

• Corpus fund or monetary compensation

• Temporary rent and hardship compensation

2. Determination of Long Term Capital Gain

We assist in:

• Calculation of holding period

• Determining cost of acquisition and indexed cost

• Identifying taxable and non-taxable components
  
  

3. Tax Exemption & Optimisation Options

We guide members on lawful exemptions such as:

• Exemption on receipt of new residential flat

• Treatment of additional carpet area

• Long Term Capital Gains Account Scheme, where applicable

• Other applicable exemptions under Income Tax Act
  
  

4. Structuring & Documentation Support

We assist in:

• Structuring redevelopment consideration efficiently

• Proper documentation to support tax positions

• Coordination with agreements and PAAA terms
  
  

5. Member Guidance & Awareness Sessions

We support societies by:

• Conducting member-level explanations

• Addressing common tax-related queries

• Providing clarity before execution of agreements

Benefits of LTCG Tax Optimisation

• Lawful reduction of tax burden

• Better understanding of tax implications

• Avoidance of future tax disputes

• Compliance with Income Tax regulations

• Financial clarity for society members

Our Assurance

We ensure that LTCG tax planning is fully compliant, transparent, and customised, helping members optimise tax outcomes while adhering strictly to applicable laws.