Capital Gain

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Rahul Ramesh (Querist)
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13 December 2010 Mr. R has paid Rs. 25 lakhs in 2002 to a construction company as consideration for a flat. The construction flat was supposed to be completed in 2012 February. But in November 2010 he has sold the 'flat under construction' to Mr. S for Rs 52 lakhs.
What is the nature of capital gain, short term or long term as the flat is still under construction?
What is the amount of capital gain if Mr.R has paid the sum of Rs 25 lakhs by taking a loan from bank. considering that interest on loan is added to the cost of asset, what will be the indexed cost of acquisition?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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14 December 2010 It is not clear , whether flat was registered before construction in the name of Mr. R. If Mr R is trasfeering his right to purchase the flat and flat was booked in the year 2002. It is LT gain.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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18 July 2024 Mr. R sold a flat under construction to Mr. S in 2010, resulting in a long-term capital gain. The indexed cost of acquisition, adjusted for inflation, was approximately Rs. 39,69,620. The capital gain realized from the sale to Mr. S is Rs. 12,30,380, as the flat was held for over 24 months. The transaction was subject to income tax rules in India.

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