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Tax implications

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This query is : Resolved

Rohan (Querist)

11 March 2014
Dear sir,

A brief query of my is below:

1. I have booked a flat in Dec 2009 costing approx Rs 34 Lacs. Which has construction linked payment plan.

2. Agreement for purchase was done in March 2010.

3. By now I have paid approx. Rs 26 Lacs. Approx Rs 8.0 Lacs balance to be paid.

4. Flat is expected to be handed over by Oct 14.

5. I want to sell this flat and I may get approx Rs 50 Lacs as sales value i.e appreciation of Rs 25 Lacs.

6. I want to invets entire some is some other property.

Query: Will this appreciation attract any tax liability?

Regards.

Rohan Srivastava

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 March 2014 if you sell before Oct 2014, the sale shall be accounted as long term capital gains arising out of sale of right in the under-construction property. you can claim exemption by reinvesting as per section 54F/54EC.

if you decide not to reinvest, capital gains shall be taxed at 20%

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