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Tax on property sold

Tax queries 411 views 4 replies

Dear Sir/madam,

I purchased under constrution property in 2009 and and sold in June 2013 ( before receiving the possession of property). Please advise whether i will be loable for Long Term Capital Gain Tax  and whether i will be eligible for exemption u/s 54 of IT Act

Pls revert urgently

 

Replies (4)

To reply on such a question few more details are required. What I can make out from your uestion is as follows..

1. May be you have purchased (booked) a flat which was undergoing construction say in Apr 2009 and for some reason the construction is still on.

2. You decided to sell the property in June 2013.

since the property (flat) is incomeplete there is no question of Possession.

Kindly confirm if this is the case ? Reply shall be sent accordingly. 

There is no Point in Computing the Property Under the Head Capital Gain.

Of of all the Tansactions that I have seen that are computed under the head capital gain, the propert/ assest is generally possessed / owned by the assessee eg Shares, Land, Building (Complete).

Rather it should be Computed under the Other Sources. This is the most appropriate heading to Tax your income.

Also Take a second Opinion

It will be covered under capital gain only.

As Mr. Hitesh Khanna said it must be purchase of booking.

I would like to know the jurisdiction under which you would be covered as recently Delhi HC has passed a judgement,which am finding hard to digest, according to which one should also consider the cost to complete the construction

Also there are contrary rulings in respect of date of acquisition,Delhi HC has taken a stand that date of agreement is to be considered while some have ruled that date of allotment letter.

 

We would need more details for specific Querry

It will be LTCG and eligible to avail exemption u/s 54.


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