Capital Gains Dilemma

Tax queries 892 views 3 replies

Naveen

18 Points Joined March 2007

Dear All,

Please help me with my dilema on Capital Gains: The case is as below:

I had booked a flat in joint names of my wife and myself by paying 90% (19,72,500) downpayment in August 2004 fo which I have a sale agreement to that effect. Then in July 2007 I paid the remaining 10% 1,97,250 along with maintenance costs, car park, govt deposits etc (total cost of the flat so far is 27,82,936/- for which I have the receipts and cheque copies. I took possesion on the flat in May 2008 and got the sale deed registered in March 2010 with guidance value on the deed showing 24,66,840 plus 1,91,000 stamp duty.

Almost all of the funds used to purchase this flat is from my NRI funds as I was a NRI during from 1999 to 2007 and still continue to be an NRI but been here in Bangalore from 2007 onwards and will be leaving soon by end December.

Now I am planning to dispose the flat and have got an offer of75 lakh, I want to know what are my tax implications, what document will the tax calculation considers (if agreement its long term whereas Sale Deed it will become short term capital gains) How much will I land paying tax, is there any way to minimise tax. What is the best way to repatriate my funds abraod when leaving and how do I go aboout..... piff!!!!!!!!! so many doubts, so little knowledge :(

Please educate me as a four year old as am too scared with these tax things even to understand..... professionals like you all will continue making our lives easier with your valuable knowledge sahring. Thanks a lot in advance to one and all for considering my query for a response.

In dilema, Naveen.

Replies (3)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

1) 1st transaction aug 2009 + 36 months = aug 2012 is qualified date for LTCG, in simple logic without going in complexity of documents and registration date.

2) such amount gained is short term capital gain if sold before 2012 aug and would be taxed as per slab rates added to your normal income.

3) date of possession would be taken for LTCG calculation if its above 3 years.

Naveen

18 Points Joined March 2007

Sorry instead of August 2004 I had written August 2009, my sincere apologies. However I have been told that Deed of Slae is considered as the proof of purchase rather than Agreement to sale is not considered. In my case Agreement was doen in August 2004 and Deed of Sale in 2010. Thanks!