Capital loss for under construction flat cancellation

ITR 1114 views 2 replies

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

Replies (2)

This is not a LTCL.... this is a debt loss.... cannot set it off with any loss.

 

yes, Mr. Raghvendra is right..

Asset was never transfered to you... Rs.12L was the advance you had paid to builder...n on cancelletion of your flat(BOOKED)...you lost Rs.2L is your capital loss...which can not be setoff against any head of income because it was not your loss of income / loss.

 


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