Income tax on flat resale

Buyer purchases an underconstruction flat from builder for 60lac. The stamp duty was paid (eg. 15lac) only on the undivided share of land and builder mentioned in sale deed that the flat is under construction and purchaser is getting the apartment duly constructed by the builder and purchaser owns the cost.

In one year, the flat consturction is complete and ready for posession.  If the purchaser plans to resell the flat (eg 75lac) , what will be the tax liability. Will the STCG tax be calculated on ( 75 - 15) or ( 75 - 60) ?

Appreciate your help.

Replies (5)

Mr.Alex J. Francis

You are not clear whether the purchase consideration of Rs.60,00,000/- includes cost of proportionate and and cost of constructed structure of the flat?

Please frame your question again.

Best Wishes

Sathikonda

60lacs is the amount mentioned in the flat sale agreement with the builder. This includes the UDS land price and the flat construction cost.

 

Thanks,

it will be 75-60.the construction cost can be classified as cost of improvement if not cost of acquisition.

It will be on 15Lacs only irrespective of stamp duty i.e., difference between cost of acquisition and sale consideration

 

STCG will be 75 - 60 = 15 lac 

 

If Rs. 15 Lac is paid separately i.e. not included in Rs.60 Lac then 

STCG will be 75 - 75 = Nil

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