Hi, Please find overall details and few queries: 1). I bought a flat in Nov 2005 for Rs 35L 2). I sold the same flat in Aug 2010 for Rs 125L 3). Same year, in Oct’2010, I booked another flat for Rs 12L, received Allottment Letter in dec 2010. Paid another payment of Rs 125L as down-payment (95%) for the given flat in Dec 2010. pending 5% payment is left to pay at the time of possession. Long Term Capital Gain calculations: 1. purchae (11.2005) 35L 2. index price (08.2010) 50L 3. sale price 125L 4. long term capital gain 75L 5. long term capital gain tax arise @ 20% on 75L = 15L to save the LTCG tax there are 2 ways: 1). Person has to buy ready-posession property within 2 years 2). Person has to buy under construction property and get posession within 3 years. I’m falling under point-2 as I paid full amount straightaway in the same financial year (more then requirement for LTCG) I also declared my under-construction property in my ITR hence covered for paying LTCG tax. Now, there are few queries: 1). For under-construction property, which date (Allotment-date (Dec’2010) / Posession-date (Dec’2013)) will count for short-term/long-term capital gain calculations ? 2). want to sell the under-cons property in april 2014, please share the tax implications. Request you to please confirm as I followed up with 3-4 CAs but they don’t have clarity on this.
CAclubindia
