After the demise of my parents, I and my brother sold off the parental house and the proceeds were shared equally between us. To get benefit on capital gains tax, I booked a flat of a builder on EMI basis, with my spouse being the second applicant. I am a housewife with no income (and no IT return) and my spouse has taken the bank loan for meeting the EMIs. The details of my receipt and further investment are as follows:
(a) Received the proceeds of Rs 15 lac in Jul 2006.
(b) Booked the flat in Jan 2007 by paying Rs 9 lac
(c) Paid the EMI as:
(i) Rs 1.43 lac on Dec 2007.
(ii) Rs 1.43 lac on Mar 2008.
(iii) Rs 1.43 lac on Jun 2008.
(iv) Subsequent EMIs paid/will be paid through bank loan by my spouse.
The agreement between the builder and self was signed in Jan 2007 with a clause that the possession would be given 36 months. The construction of flats is still going on and it appears that it would be handed over by Dec 2011. I believe that to get the benefit on capital gains tax, the possession should be taken over within certain period. Please let me know the rule position and if the delay is being done by the builder without my fault.
After the demise of my parents, I and my brother sold off the parental house and the proceeds were shared equally between us. To get benefit on capital gains tax, I booked a flat of a builder on EMI basis, with my spouse being the second applicant. I am a housewife with no income (and no IT return) and my spouse has taken the bank loan for meeting the EMIs. The details of my receipt and further investment are as follows:
(a) Received the proceeds of Rs 15 lac in Jul 2006.
(b) Booked the flat in Jan 2007 by paying Rs 9 lac
(c) Paid the EMI as:
(i) Rs 1.43 lac on Dec 2007.
(ii) Rs 1.43 lac on Mar 2008.
(iii) Rs 1.43 lac on Jun 2008.
(iv) Subsequent EMIs paid/will be paid through bank loan by my spouse.
The agreement between the builder and self was signed in Jan 2007 with a clause that the possession would be given 36 months. The construction of flats is still going on and it appears that it would be handed over by Dec 2011. I believe that to get the benefit on capital gains tax, the possession should be taken over within certain period. Please let me know the rule position and if the delay is being done by the builder without my fault.
CAclubindia
