Redeveloped Gifted Flat: No Capital Gains Tax Liability

• For gifted or inherited property, the holding period for capital gains tax includes the previous owner's ownership.
• A property gifted in 2025, originally purchased in 1993, qualifies as a long-term capital asset due to the combined holding period.
• In redevelopment cases, the "transfer" for tax purposes occurs when the completion certificate for the new property is issued.
• Individuals and HUFs can claim exemption under Section 54 for redeveloped flats, as gains are considered reinvested, resulting in no tax liability.

Why It Matters: Clarifies no capital gains tax on gifted, redeveloped property.