Short term Capital Gain

Others 965 views 4 replies

Dileep K Jain

Fianancial Consultant

65 Points Posted on 18 November 2009

I have booked a flat in 2006 and got possession in MArch, 2008 at a cost of Rs. 15.12 lakhs+Rs. 2.00 lakhs towards one time maaintenance, club membership & ar parking + Rs. 1.50 lakhs Registration & Stamp duty + Rs. 1.50 lakhs incurred on addition & Alterations of flat.

I have sold out that falt for Rs. 27.00 lakhs in November, 2009 and paid brokerage of Rs. 45,000/- From the rest of amount I have paid Rs. 7.50 lakhs towards outstanding HB Loan and purchased land for Rs. 15.75 lakhs and apid brokerage Rs. 21000/- and Registration & Stamp duty of Rs. 1.00 lakhs only.

Please guide me on the followings:
1. Whether capital gain is hort terms or long term
2. Whether the capital gain will be set off agianst the land purchased
3. How much will be tax liability as the flat was sold within 20 months

4. How I cane save the maximum tax.

Replies (4)

Priyanka

Chartered accountant

371 Points Posted on 24 November 2009

sir, plz clarify the agreement date with builder so it is possible to know clearly wheather is it short term or long term

CA.SKR

CA; CS-Final (One Group); DISA (ICAI); I

442 Points Posted on 24 November 2009

1. The capital gain is short term as the flat was held for less than 36 months.

2. The capital gain will not be set off against the land purchased.

3. Income Tax will be calculated at the normal rate prevailing on the date of sale on the capital gain i.e. Net Sale consideration (26.55 lacs) minus Cost of acquisition, registration and cost of improvement.

Dileep K Jain

Fianancial Consultant

65 Points Posted on 26 November 2009

The advance for flat was was given in April, 2006 and agreement of flat was done in August, 2206. In the agreement word "Purchaser" was used for me.

Tarun

CA Practice

166 Points Posted on 18 July 2011

Hi Friends,

Please advice from which date Mr. Jain will be considered as the owner of flat, from the date of booking the flat or from the date he got the possession ?

The answer to above question will change all the advice on above said situation i.e LTCG or STCG