I had booked a flat in 2006 and paid Rs 12 lakhs to the builder in installments. No agreement was signed with the builder. Later as builder flouted the terms and delayed the project, I asked for cancellation. The builder after deducting 2 lakh rupees as administration charges, refunded Rs 10 lakhs in year 2011. Is long term capital loss applicable in this scenario? If yes, will the amount be Rs 2 Lakh or more taking into consideration property indexation?
Regards,
Manoj