capital gain

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shaikh irshad (Querist)
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25 October 2008 an assessee has 1/6th share in an inherited property since 1995. in feb 2006, the property was sold to the builder and the assessee is compensated with a two bedroom flat for his 1/6th share in the property and the amount is not quatified in the agreement.the possession of the flat is given in sept 2008 by the builder. the flat is sold after getting the possession.

The queries are:
1) how to arrive at the capital gain in feb 2006, when the property was sold to the builder.
2) when the flat is sold after getting the possession, wheather the period under which the flat was under construction will be counted for ascertaining the short/long term capital gain?
3) what will be the cost of acquision in both the cases.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 October 2008 1. The cost of construction fixed by the builder in feb 2006 (sale value of flat fixed for others - the builders profit) is the sale consideration of land.
2. No.
3.In the first case(land) the previous owners cost. For flat the amount as in 1 above is the cost of acquisition the flat.

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