Capital Gains: Sale divided into Property & Movable Assets

735 views 4 replies

 

Hi,

I bought a flat in bangalore for 47.6 L in may'07. I sold the flat in Dec'10 for 55L (Sale Deed) and the furnishings and fittings within the house for another 10L (Sale of Movable Assets). The indexed value of the flat in dec'10 was 60L.

I would like to know if the capital gains will be paid on the sale value of the flat only (55L) or the total value (55L+10L). In case the sale value is taken into consideration for capital gains then how should i treat the sale of furnishings and fittings.

Kindly advise.

Regards,

Prithesh

 

Replies (4)

Kindly let me know if anyone has suggestions!

I think Indexed Value you are referring to is Market Value for calculation of Stamp Duty.

 

M.V: 60 lacs

This is your cost of Sale or Deemed Sale Consideration.

But it seems that the Flat along with Furniture & Furnishings is being sold for Rs. 65 lacs and to save yourself form CG Tax you have made these agreements seperately.

I think that the Sale Consideration in your case should be Rs. 65 lacs. (No other way-out)

Even if you made seperate agreements the seller and the purchasers both are same parties and in such case all the consideration recd from purchaser will be treated as Sale Consideration by ITO.

 

If you sold Furniture to some other party other than the purchaser then you should show SP @ Rs. 60 Lacs being M.V.

Whatever you do be carefull as the ITO is watching you and your trsaction is recorded in AIR, you will soon get query letter for that from ITO.

 

 

 

 


Indexed value is the market inflated cost price that is taken into account to see if CG are there or not.

Yes, This will be treated as your cost of Sale or Deemed Sale Consideration as explained above

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