Hi,
I would like to know about the the scope of exemption from payment of LTCG tax under following circumstance:
I am an NRI. I have sold one flat in Sep 2011 which I purchased in Aug 2004. As per the computations considering Indexed Cost of Acquisition there has been a LTCG of Rs.515,000 (before deducting brokerage Rs.50,000 paid in cash for selling the flat) from sale of my old flat.
I have purchased a new flat, particulars of which are as below:
Agreement to sale signed (between self and promoter) when the flat was under construction : 01.10.2008
Date of possession of new flat : 11.11.2010
Date of Sale of old flat : 20.09.2011
Date of registration (signing of deed of conveyance) of new flat : 25.09.11
I have paid brokerage of Rs.50,000 for selling the old flat, paid registration and stamp duty charges for New Flat Rs. 475,000 from the sale proceeds of old flat.
While going through some of the related case laws I found the following:
"Date of taking possessions relevant for computing time-limit - Date of taking over possession of property purchased, and not the date of registration of sale in favour of the assessee, is relevant for computing the prescribed time-limit - CIT v. Mrs. Shahzada Begum [1988] 173 ITR 397 (AP)."
Since my date of possesion of new flat is within one year prior to sale of the old flat pls let me know whether I have to pay LTCG tax of approx Rs.105,575 for F.Y. 2011-12 (A.Y 2012-13) as per computation I made considering tax rate of 20% and Education Cess 3% thereon.
Subhankar Ghosh
U.A.E.
CAclubindia
