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Capital Gains tax

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Sam

Employee

23 Points Posted on 05 April 2021

Dear Sir,

I have invested in a property thru my capital gains account after selling one of my old properties to avoid LTCG tax on the amount received after selling that property. The project in which I invested is under construction since the time I invested in 2013. There are no signs of project getting completed. I did registration of this property in Jan 2019. Invested amount is 25 lacs and current market rate is 40 lacs. If I manage to sell the property now, will I be liable to pay capital gains tax again ? LTCG tax is applicable 2 yrs after possession or 2 yrs after registration ? 8 years have been completed after booking the flat in Feb 2013 and if builder is not giving me possession, I have to move out of the project. There is no option.

Replies (2)

Quick Summary

This discussion concerns Capital Gains Tax (CGT) liability on a property purchased in 2013 to reinvest capital gains and avoid tax. The property is still under construction, and the investor is concerned about whether selling it now would trigger CGT. Key questions revolve around when Long Term Capital Gains (LTCG) tax is calculated – two years after possession or registration – and if they could be liable for short-term CGT despite the long holding period due to the builder's delay in possession.

Ankit Neema

1359 Points Posted on 05 April 2021

When original asset is sold?

Sam

Employee

23 Points Posted on 05 April 2021

I have still not sold it. I am planning to sell it. Will decide depending on tax liability. I dont know whether I will be liable to pay capital gains tax after selling this property. If yes, then short term or long term ? If LTCG is calculated 2 yrs after possession and if builder is not giving me possession, then am I liable to pay short term capital gains tax even after so many yrs of investing ? I have already completed 2 yrs period after flat registration and last payment made more than 2 yrs ago. Full flat payment is in white and completed.