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Capital Gain - Selling Under Construction Property in 4 years

Tax queries 388 views 2 replies

Need your Suggestion -

  • Bought property in 2019 (Sale Agreement in March 2019)
  • Selling next month (Dec 2023)
  • Possession not yet done (next year expected)
  • Making Profit of Rs. 22 Lakhs and Buying Re-sale property

Confused If this transaction will be considered as LTCG or STCG. One person told me it will be STCG and I need to give 30% tac on this profit :( but as I read in many article it should be LTCG based on time period consideration from date of agreement and not from date of possession (hence no tax needs to be paid). Please help.

Replies (2)
If the holding period is more than 24 months incase of immovable property it is LTCG. Here it's more than 24 months so it's LTCG and tax is not 30%, I think it's 20% for LTCG. Further if you want to avoid tax invest in NHAI bonds within 6 months.
Dear Sharad Jain Sir, you are not selling a flat. you are selling rights to acquire a flat.

Rgds
CA. Raj Doshi
R C D & Co.
Chartered Accountants


CCI Pro

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