Capital gain tax on the sale of a residential flat
This query is : Resolved
05 December 2008
Hello,
I bought a flat in Dec 2005 which was registered in Apr 2006. I got the possession of the flat in Aug 2008.
I want to sell this flat now. From which date the computation of capital gain tax will be done? Would it be from
a) Dec 2005 i.e. the month that I bought the flat in
b) Apr 2006 i.e. the month that I got the flat registered in
c) Aug 2008 i.e. the month that I got the possession of the flat in
Thank you for your replies.
I bought a flat in Dec 2005 which was registered in Apr 2006. I got the possession of the flat in Aug 2008.
I want to sell this flat now. From which date the computation of capital gain tax will be done? Would it be from
a) Dec 2005 i.e. the month that I bought the flat in
b) Apr 2006 i.e. the month that I got the flat registered in
c) Aug 2008 i.e. the month that I got the possession of the flat in
Thank you for your replies.
05 December 2008
April 2006 will be counted for computing capital gain tax.
05 December 2008
Let us keep aside disposal aspect of flat for some time.
You got possession of flat in Aug 08. As I understand this has to be taken as date of completion. In other words, you have to treat the flat as self occupied or let out with effect from Aug 08 only and return the income from house property from FY 2008-09 or AY 2009-10.
Registration of flat in your name in Apr 2006 is immaterial for returning income
Asset has come into existence for use from Aug 08 and not earlier
It therefore appears to me that Aug 08 has to be reckoned for all purposes not excluding Capital Gains
Besides tax aspect, now real estate market is very unfavourable for sellers; you may therefore better wait for some time, if you really intend to dispose off
You got possession of flat in Aug 08. As I understand this has to be taken as date of completion. In other words, you have to treat the flat as self occupied or let out with effect from Aug 08 only and return the income from house property from FY 2008-09 or AY 2009-10.
Registration of flat in your name in Apr 2006 is immaterial for returning income
Asset has come into existence for use from Aug 08 and not earlier
It therefore appears to me that Aug 08 has to be reckoned for all purposes not excluding Capital Gains
Besides tax aspect, now real estate market is very unfavourable for sellers; you may therefore better wait for some time, if you really intend to dispose off
07 December 2008
Thank you very much Mr. Jitender and Mr. K V Subba Rao for your replies.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- SFT Cash Deposit in Current Account
- Annual return in Gst
- When TDS on GST applied
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
