Tax and indexation querry

374 views 2 replies

I purchased a flat (under construction) in Godrej in Dec 2022, and want to sell it before March 2025 (before registration).

Is indexation benefit available for the same.  

 

Further Is indexation benefit only available for only 1 or multiple flats sold within the same financial year (before March 2025)

Replies (2)
Quick Summary
This discussion clarifies the availability of the indexation benefit when selling a property before it's registered. Generally, if you sell a property before holding it for 24 months, you won't qualify for indexation and will face short-term capital gains tax. However, if you sell multiple properties, indexation is available for each one provided each has been held for over 24 months from the purchase date.

  1. Yes, provided possession held by you.
  2.  For all the flats sold, but purchased before 2 years before sell.

To answer your questions:

Indexation Benefit for Selling a Flat Before Registration: - *Availability*: Indexation benefit is not available for selling a flat before registration, as the property has not been held for more than 24 months (2 years) from the date of purchase.

- *Tax Implications*: The capital gains will be taxed at 30% (plus cess and surcharge) as short-term capital gains, since the property has been held for less than 24 months. Indexation Benefit for Multiple Flats Sold Within the Same Financial Year:

- *Availability*: Indexation benefit is available for multiple flats sold within the same financial year, provided each flat has been held for more than 24 months from the date of purchase. -

 *Calculation*: The indexation benefit will be calculated separately for each flat, considering the date of purchase and sale of each property.

- *Tax Implications*: The capital gains from each flat will be taxed at 20% (plus cess and surcharge) after considering the indexation benefit for each property.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
06 July 2026
Senior Accountant

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
20 July 2026
Senior GST Executive

Chandak Agarwal & Co

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details