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Long term capital gain tax

rajesh (Others) (69 Points)

08 March 2015

Hi ,

in 2011 me and my father We have booked one flat with a builder that is not yet registered.

We are planning to sell that flat now . Will it come under long term capital gain or short term capital gain.

How to save tax arising out of that property.

Thanks

Rajesh

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Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 08 March 2015

If you have taken possession and make substantial payment for booking flat, evn though not yet registered, then Date of acquisition will be date of Possession of property or Making substantial payment which ever is earlier. So whether it is Long term capital asset or Short term capital asset will be decided based on date of Possession and making substantial payment. If it expires three years then it is Long term capital gain, nevertheless Short term capital gain. If it is Long term capital asset then you can claim exemption u/s.54EC by buying NHAI bonds or Rural electrification bonds(Having minimum maturity period of 36months) with in six months from the date of transfer or filing of return which ever is earlier.