Tax on transfer of right in under construction property/before possession

Tax queries 325 views 5 replies
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Bank Manager
23 Points Joined August 2019

Sir,

i booked a builder flat in NOIDA on 28-2-2010 and allotment letter issued on 18-3-2010. Total cost of the flat was Rs.2932000/-. i deposited Rs.1737560/- in the F.Y. 2010-11, Rs.843529/- in 2011-12, and Rs.272053/-in 2012-13. I transferred  the flat before taking possession in Nov.2018 for Rs.4850000/- through the builder and deposited Rs.170000/- as transfer charges in builder's office and Rs.50000/- commission to agent..  I request to please let me know how much will be the total LTCG and benefit of indexation on the abovesaid case. 

Thanking you,

Ramesh Chander

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On 02 August 2019 at 14:21 Report
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Team Lead
7558 Points Joined November 2011
since allotment letter granted I. fy fy 2009-10, and property transferred in 2018-19 so it's a LTCG.
LTCG would be RS. 697,027

sale consideration is 48,50,000
Indexed COA
2932000*280/148=55,47,027
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On 02 August 2019 at 14:56
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78 Points Joined January 2019
long term capital loss 917000
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On 03 August 2019 at 02:58
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Bank Manager
23 Points Joined August 2019

Sir,

Thank you very much for your reply.  Please let me know if I will have to pay any Tax (LTCG) or there will be no tax payable as the indexed COA Rs. 5547027/- is higher than the amount Rs.4850000/- received on transfer of Flat before possession.

For indexation, total cost of flat (as per agreement) will be taken or it should be calculated as per the amount of installments paid in each financial year. 

 

Thanking you,

Ramesh Chander

 

 

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On 05 August 2019 at 22:07
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Team Lead
7558 Points Joined November 2011
it will be always as per agreement. however I
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On 05 August 2019 at 22:20
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Team Lead
7558 Points Joined November 2011
However if there's any improvement being done to the property, then this cost of improvement will be indexed as per the index of the year in which improvement takes place. However you need to keep the bills for the cost incurred towards improvement to substantiate the cost
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On 05 August 2019 at 22:24


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