Sale of three-year-old parking space will be treated as LTCG: Analysts

According to another expert, whether parking space can be sold depends on the nature of the space concerned. It must conform to the definition of garage, as provided in the RERA.

In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Mumbai bench, held that the capital gain from sale of car parking spaces independent of a flat was short term in nature.
 

In the wake of this ruling, let us understand the rules governing the sale of parking space, and the taxation of gains from such sales.
 

Is selling permitted?

According to the laws of most states, car parking spaces are a common area. Developers, therefore, can’t sell such spaces independent of the flat.
 

Pratyush Miglani, managing partner, Miglani Varma & Co — Advocates, Solicitors and Consultants, says, “To circumvent this