Hello Experts,
I purchased under construction flat in June 2012 and took home loan from SBI. EMI's started from August 2012. The first installement was demanded by builder immediately through demand note and bank paid it in August 2012 itself. In due course of time, flat was ready and I got posession in January 2015. I dont have formal allotment letter as such from builder. But I do have all demand letters and bank statement which clearly shows payments done to builder.
I am now selling my flat and the sale deed should be registered by May first week.
My queries are -
1. Will this sell be short term or long term capital gain. If posession date is considered (Jan 2015) then it is short term. But if date of allotment of flat or when the bank pays first installement to builder is to be considered as date of acquisition (August 2012), then it will be long term. (Read somewhere that there is supreme court decision that date of flat allotment should be considered as date of acquisition). However still not sure. Please clear my doubt here from income tax point of view.
2. Will I be required to return all the tax benefits (interest + principle exemption) that I claimed for 3 years. If yes, how to calculate the amount.
Thanks...
-Abhay bakshi
CAclubindia
