Short term capital gain on flat sale

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This query is : Resolved

tulika (Querist)

28 May 2012 Hi, I bought a flat six months back at 34.5 lace (sale deed of 31.5 made and registration and stamp duty paid on this amount). Now I plan to sell the flat at a higher price. My concern is that can I add the cost paid towards registration and stamp duty be added to my cost price in order to reduce my stcg. Also I have taken tax benefit on.principle componnt and inter
est component for six months under sec 80 C and D respectively. Again if I hve taken the benefit of stamp duty charges under sec 80c can I again add that amount to reduce stcg.
Thanks in advance.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 May 2012 You can include Registration Charges and Stamp Duty in the cost of the Property.
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The deduction if any claimed U/s 80C in reference to the property sold within 5 years of its acquisition will be treated as income for the Fin. Year in which such property is being transferred.
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tulika

tulika (Querist)

29 May 2012 Does this mean that if I registered my flat in Oct last year and am selling in June this year, the 80c benefit I took from April to June this year will only be treated as income for this fin year. Also the stamp duty benefit was also claimed.in last fin year. Will this be again reversed in this fin yr if I include that amount in the cost of property.

tulika

tulika (Querist)

29 May 2012 Please suggest..

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

29 May 2012 The deduction claimed during the previous year will be treated as income of the current year.

No deduction shall be allowed for the current year.

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