Purchased flat related query

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Purchasing a flat doesn't create a capital gain, as capital gains tax only applies when you sell a property. However, if the property value exceeds £50 lakh, you're required to deduct 1% TDS under Section 194IA and provide a certificate to the seller. This purchase entry isn't necessary to declare unless you earn income exceeding £50 lakh.

deepak

deepak (Querist)
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29 February 2020 If a person has purchased flat without sale of any flat or property. in this case purchased flat entry is necessary to show in capital gain schedule or other schedule?

Eswar Reddy S

Eswar Reddy S (Expert)
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29 February 2020 Hello, Capital arises only on sale.There is no capital gain on purchase. But if you a flat or property ,the value of which exceeds 50lacs then you must deduct tax @ 1% u/s 194IA and issue Tds Certificate to the seller