Tax and indexation querry

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.

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