Capital gain tax on the sale of a residential flat

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Ashish (Querist)

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.

Jitender

Jitender (Expert)

05 December 2008 April 2006 will be counted for computing capital gain tax.

K V Subba Rao

K V Subba Rao (Expert)

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

Ashish

Ashish (Querist)

07 December 2008 Thank you very much Mr. Jitender and Mr. K V Subba Rao for your replies.

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