Capital gain implication

29 September 2013

Hi,

Please help me understand the capital gain implication on the below transaction.

I booked a flat in May 2010, and got possession of the flat in Jul'12. I'm planning to sale the property which is not registered.

Should this be a Capital Gain. If yes, LT or ST ?

Thanks,

Sid

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4 Replies

CA Pallav Singhania (IT System Auditor) (33678 Points)
Replied 29 September 2013

You've got the possession of the property,

the registration is immaterial...

If you sale the flat now it will be a Short term Capital gain,

No exemption will available in this respect...

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Siddhartha Roy (ABC) (25 Points)
Replied 29 September 2013

Thanks Aryan..

Now since this will be a ST, I assume this will be taxed a normal slab rate.

How the sale consideration will be determined, Price quoted in the sale deed or the as fixed by the registrar.

CA Pallav Singhania (IT System Auditor) (33678 Points)
Replied 29 September 2013

Sale Consideration XXX

Less:

Cost of Acquisition XXX

STCG XXX

No, Indexation benefit will be allowed as the property is being sold within 36 months...

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Mihir (Wealth Manager) (5293 Points)
Replied 30 September 2013

Agree with Mr. Aryan. It will be short term capital gain. Sale price is as quoted in the sale deed/agreement.

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