Tax on selling under construction residential property

Dear All,

I have purchased an under construction flat in May, 2010 and would like to sell it in 2015 before possession.

I have paid this purchase value as on demand with construction linked plan and now will be paying “Ownership Transfer Fees to Builder to transfer unit to new buyer, Broker Charges” and also I have paid “Interest Amount” on home loan for this unit so far.

Would like to check how tax will be calculated.

I read online that it will be Capital Gain Tax considering CII Index as 711 in 2010 and 1024 in 2015 with formula to get current value = (CII Index in 2015/CII index in 2010) x purchase value in 2010)

And then see if calculated current value of flat is higher or lower to sale price of flat to compute Capital Gain Tax or loss.

Would like to check if I can deduct “Ownership Transfer Fees to Builder to transfer unit to new buyer, Broker Charges, and Home Loan Interest since 2010” from current value arriving after CII Index Calculation to compute Capital Gain tax or loss.

Thank you in advance for extended help.

Alok

Replies (3)

In my opinion you can, since you have purchased an actionable claim in property and not the property itself

If such rights are to be sold then "Ownership Transfer Fees to Builder to transfer unit to new buyer &  Broker Charges" are necessary and are in relation to sale of your long term capital asset
 

Pre construction period housing loan int can b claim as deduction for next 5 yrs and builder charges n agent fees can b claim as deduction from sale consideration so to the extent ur sale value get depleted

But there is no house property in this case.

What is purchased and sold here is "right to acquire the property" and not the property itself (since it does not exist). Transaction here is of an actionable claim capable of being sold and is a capital asset.

Had possession been taken of the property, 24b would have come into picture

But I believe that it can not , in this case.

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