CAPITAL GAIN ON SALE RIGHT OF UNDER CONSTRUCT PROPERTY

IS SALE OF RIGHT OF UNDERCONSTRUCT PROPERTY IS CAPITAL GAIN ?

IF CAPITAL GAIN WHAT IS HOLDING PERIOD COUNTED FROM FOR LONG TERM CAPITAL GAIN ?

Replies (1)

Dear Sir,

I think Sale of Underconstruction Property will be treated as Sale of Land only since "Building" which is an asset separately identifiable from "Land"  has not came into existense as such.

Period of Holding - From the date of acquisition of Land will be followed...

Pls note - I have assumed that Underconstruction means not even a single floor or a room has been constructed and the stucture in itself is incomplete.....

I must say interesting query but want to take it further & make it more interesting -

Q1  "Whether this expenditure incurred on construction so far can be claimed as Cost of Improvement"??

Q2  "Whether Sal Price will be apportioned between "Land" & the "Partial Stucture".??

Now I personally feel both questions go hand in hand and there can be situation like

a) Yes -Yes

or

b) No-No

but cannot be Yes -No or No-Yes

 

 

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