Capital Gain

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This discussion clarifies the calculation of capital gains tax on a property sale. The consensus is that the capital gain is long-term, with the purchase indexed from November 2013, the date of the notarised agreement of sale, even though possession was taken later. This allows for a more favourable tax calculation based on the earlier purchase date.

Kapil

Kapil (Querist)

22 December 2020 Hi There,

I have a question related to capital gain on my property sold.

I purchased a flat by entering into an agreement of sale (Notarised) in Nov 2013 for 28 Lacs and got the possession in Oct 2016. The sale deed was not registered at this time but was done in Jun 2018 (Stamp duty paid 3 Lacs).

I sold this flat in Dec 2019 and the sale deed was registered for 40 Lacs.

My question is what will be the nature of capital gain here- Long/Short term?
Amount of capital gain tax for AY 20-21.

Thanks in advance.
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 December 2020 It's long term capital gains only. Adopt November 2013 index.

Kapil

Kapil (Querist)

24 December 2020 Thanks a lot Sir for your quick response. Appreciate your help.

I believe you already have considered the fact that possession letter was received on 3rd Oct. In view of this just wanted to make sure that index of 2013 can be used.

Please help.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 December 2020 Yes, it can be used. Have notorised sale agreement as evidence.

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