LTCG tax query

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.

Replies (3)

Hi,

The date of registration of sale deed document will be the date of purchase.The date of allotment is irrellavent. Only after sale deed registration you got the title of the property.

thanks for the response. seems like once I get possession of the new property and get it registered. if I sell within 3 years of possession/registration then short term capital gain = selling price - (property cost - LTCG for the earlier property) if I sell after 3 years of possession/registration then long term capital gain = selling price - property cost
Originally posted by : Yash

thanks for the response.
seems like once I get possession of the new property and get it registered.

if I sell within 3 years of possession/registration then short term capital gain = selling price - (property cost - LTCG for the earlier property)


if I sell after 3 years of possession/registration then long term capital gain = selling price - property cost


yes u r correct

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