Capital gains

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Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2012 What will be capital-gains-tax treatment If one sells his/her under-construction property bought from Builder under construction-linked-plan, before possession ?before and after 3 years from the date of allotment/flat buyer agreement.

Amol S Joglekar

Amol S Joglekar (Expert)
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11 December 2012 "right in immovable property" is also a capital asset. The period of holding is 36 months for short term / long term. Section 54 and/or 54F exemption may not be available.

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2012 to be more specific ,I had booked a 3 BHK apartment with a builder as per his payment terms on Jan 20th '2010.The builder issued me allotment letter on April 14th '2010 but builder-buyer-agreement was signed on June 4th '2010 only.Possession is due in 6 month-1 yr period.
From when will 'right in immovable property' be counted for the purpose of capital gains tax calculation?

Pls help clarify exemptions under Sec 54 and 54 F.

Amol S Joglekar

Amol S Joglekar (Expert)
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12 December 2012 Proposal/offer to "right in imovable property was created by you on 20/01/2010, accepted by builder on 14/04/2010 and reduced to writing on 04/06/2010.
14/04/2010 can be taken as date provided the same is duly incorporated in "builder buyer agreement", ELSE 04/06/2010 will be taken as conclusive evidence of creation of right in imovable property.

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