Short term capital gain query

483 views 2 replies

Hi all,

I had made booking to a flat september 2009 through construction linked plan. The market valuation of the flat at that time was Rs 38 lacs approx. I made the complete payment for the flat (excluding stamp duty and registration fees) by the end of December 2013. Recently I paid the stamp duty and registration fee (November 2014). I am planning to sell off the flat for a price of 70 lac and planning to buy another flat in different city which is costing me 80 lacs.

Question here is as follows:

1) Will this be considered under short term capital gain?

2) Will stamp duty and registration fees I paid will be considered as my cost?

3) I have paid some amount (approx Rs 3,00,000/-) towards fixtures and fittings after registration. Will this be considered for tax exemption.

Please help me on these queries.

 

Thanks & regards,

Sumit

Replies (2)

1.Punjab & Haryana High Court in case of Vinod Kumar Jain v CIT held  that the allotee gets title to the property on issuance of an allotment letter and that the payment of instalments is only a consequential action upon which the delivery of possession flows. 

In 2009 you have booked the flat but you have also to see when letter of allotment/power of attorney for possession of flat has been transferred to you. If it is in 2009 then it will be a LTCG otherwise it would be a STCG.

 

 2. Stamp duty & registration fee may be considered as cost of transfer or you may also avail deduction u/s 80C for such expenses.(Cannot avail both facility)

 

3. Acquisition of residential house does not include cost towards fixture & fittings.

 

Agree with Gagan Deep Singh 

 

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