Calculation of long term capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2013 Sir,
I purchase a Resi.plot in March,2006.I have paid Rs-346500/- & Rs-115500/-x5 instalment to govt authority developer in 2007 to2011. A amount of enhancement of Rs-14,76,840/- plus interest @15% due from January 2013.
If I sold that plot.How LTCG calculated.Possession of plot not received.
Thanks for reply
Rk jain

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 November 2013 did u receive any allotment letter earlier wherein the exact details of the plot and your rights over it were stated?

If not, it is possible that the asset may be considered as short term asset.

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 Hello sir
Thanks for reply,Allotment letter recd.Plot tr in my name in 2006 inauthority record.but conveince deed & possession of plot in waiting.I purchase it in resale.Plot no is alloted

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 November 2013 Dear Friend,

the asset you own today is "the right to acquire the said plot". Since the allotment letter was issued in 2006 alongwith the plot no, the said right came into existence in 2006. Therefore, you shall be eligible for long term capital gains and related exemptions (if you intend to avail).

With regards to computation of indexation benefit:

1. payments made till the date of issue of allotment letter are to be indexed from the date of allotment letter

2. payments made after issue of allotment letter are to be indexed from each such date.

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