Capital gain

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This discussion explains how to calculate capital gains tax on a property purchased off-plan. The key is to determine the 'date of agreement' based on the initial payment method, typically an account payee cheque. This date, along with subsequent payments made over the years, will be used with relevant indexation figures to calculate the cost basis for your capital gains tax.

Shikha gupta

Shikha gupta (Querist)

16 October 2020 How to calculate capital gain if Flat which was under construction booked in 2010 for amount Rs 200000/- and later on , on demand of builder assesses made payments and got the possession in 2016 but registry done in 2019

CA Pawan Koradia

CA Pawan Koradia (Expert)

16 October 2020 If the initial payment is done by account payee cheque then that date(year 2010) is taken as the "date of the agreement" and on 2,00,000 you can calculate the indexation cost of that year(167 or 184) (Also this asset is long term). All other payments are subject to the respective year's indexations, so you can avail that benefit.

Shikha gupta

Shikha gupta (Querist)

19 October 2020 thank you so much sir

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