Dear Sir,
An assessee booked a flat in 2005 with the builder and started making payment from 2005 onwards. Till 2011 he made payment of Rs.70 Lacs against receipts. In 2011, he signed builder agreement and was allotted a flat. The Builder agreement was for Rs. 18 Lacs. The builder demanded some other payments and upto 2015, sum of Rs. 22 Lacs was paid i.e. Rs. 4 Lacs extra in different years from 2011 to 2015. Sale deed was executed in 2015 and possession was also given in 2015. He sold the flat in November 2020.
For calculating capital gain whether the indexation is to be made on payments made date wise from 2005 onwards or taking base as 2011 presuming cost as Rs.18 Lacs and on further payments made date wise after 2011 till 2015 i.e. on Rs. 4 Lacs.
Please give your views.
Thanking You,
CAclubindia
