Big & Technical Query for Capital Gain on Property
Deepen Keniya (CA Final Student) (93 Points)
15 April 2009Deepen Keniya (CA Final Student) (93 Points)
15 April 2009
Nitesh
(service)
(136 Points)
Replied 15 April 2009
Dear Deepan,
First try to understand when was the ownership and risk transffered to you. Agreement is the base for arriving at above date.
Accordingly u casn decide whether it is longterm or short term as per section 54 of capital gains.
Rgds./Nitesh
Satish
(CA Final Student)
(479 Points)
Replied 15 May 2009
Dear Deepan,
The acquisition date of the flat will be the date you receive the possession as it is evident from the letter of possession that the property is ready for use. So the indexation will start from the year of possession. The cost of improvement would be included in total cost of flat as it is incurred during the construction phase. So its a long term capital gain and acquisition cost for indexation would be 1100000.
Satish
(CA Final Student)
(479 Points)
Replied 15 May 2009
Dear Deepan,
The acquisition date of the flat will be the date you receive the possession as it is evident from the letter of possession that the property is ready for use. So the indexation will start from the year of possession. The cost of improvement would be included in total cost of flat as it is incurred during the construction phase. So its a long term capital gain and acquisition cost for indexation would be 1100000.