Advise in matter of house sell income

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2011 Hello experts.

I have sold my flat in May 2011 month. the purchaser made Power of Attorney instead of Sell Agreement. he gave me cheque of Rs. 7,50,000/-. So this amount treated under Short term Capital Gain/loss or include in regular income.Because as per new rule property transfer through Power of Attorney is not treated as sell deed. So please guide me in this metter.

Thanks & Waiting for your reply.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 November 2011 In case you have given the possession of the property, it can be proved as genuine transaction.
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You have to calculate Capital Gains on this transaction by deducting the Cost of Acquisition from the sales Consideration.
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If the flat is a long term capital asset, you can further take indexation benefit as well as exemption from Capital Gains by investing in certain avenues.

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