I am facing certain problems as to taxation of Capital Gains the facts which are as under;
1) Mr. A enters into contract with builder X for purchase of property which is under construction by paying Rs.1000k. 2) He needs to pay Installment on yearly basis say 250k for 5 years and had paid in due time by taking loan from Bank (pre-construction interest 600k). 3) The property under construction gets completed after 7th year and possession letters is given after end of 11th year from the date of construction. 4) 300k is paid for stamp duty and registration of sale deed on 12th year. 5) No suit for delay in time lag was filed by purchaser.
Now purchaser needs to sale the above property in 13th year for 5000k and wants to know following; 1) Whether the above property is Short term Capital Asset or Long term Capital Asset. 2) What shall be Date of Acquisition for determining the type of capital asset (i.e. Long term or Short term)? 3) What shall be date of acquisition and cost of acquisition for determining the Capital gains? 4) If the above property is house property, can purchaser claim pre-construction interest as cost of acquisition? if the property is not a house property then can such claim can be made? 5) What happen to Capital Gains if the property is house property and Stamp duty and registration charges paid are claimed under section 80C?
Request you to provide your views for any of the above Issues.
CAclubindia
