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

Tax queries 466 views 5 replies

Ramesh Chander

Bank Manager

23 Points Posted on 02 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

Replies (5)

Giridhar S Karandikar

Team Lead

7558 Points Posted on 02 August 2019

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

Aman Shivharey

78 Points Posted on 03 August 2019

long term capital loss 917000

Ramesh Chander

Bank Manager

23 Points Posted on 05 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

Giridhar S Karandikar

Team Lead

7558 Points Posted on 05 August 2019

it will be always as per agreement. however I

Giridhar S Karandikar

Team Lead

7558 Points Posted on 05 August 2019

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