Go AD-Free with CAclubindia Pro and get Daily WhatsApp Updates. Subscribe Now!

Capital gains calculation on sale of property

Tax queries 31 views 1 replies

Manigandan

68 Points Joined June 2021

Hi,

I bought a villa in June 2023 and sold it in March 2026. Can someone plesae help me calculate the long term capital gains (long term because >2yrs old) ? Capital gains = Sale price - Cost of acquisition, right? Let me know apart from purchase price (Land cost & Construction cost) mentioned in the registration doc, which of the below also need to be added in the cost of acquisition . Below charges were present in the cost sheet provided to me by the villa builder who sold me the villa.

Stamp Duty
Registration charges
Documentation & misc expenses
GST 5%

For sale price, I believeI need to account only the price mentioned in the registration doc and no other charges as all those charges were borne by the buyer who purchased from me. Thanks in advance for your support.

Replies (1)

Aashok FC Advisory

Finance Compliance Consultant

297 Points Joined March 2026

Since the villa was held from June 2023 to March 2026, it should qualify as a long-term capital asset. In cost of acquisition, you can generally include all expenses incurred for acquiring the property, such as stamp duty, registration charges, documentation/legal charges, and GST paid at purchase, provided they were actually paid by you and are supported by records. For sale consideration, normally take the actual sale value stated in your sale deed, but if section 50C applies, stamp duty value may need to be considered. Only expenses incurred by you wholly in connection with the sale, such as brokerage/legal sale expenses, are separately deductible. Buyer-borne charges are not your deduction.