Capital gain

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K.V.Ramana Murthy (Querist)
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06 October 2018 I purchased a residential plot on 01.06.2015. In the same plot I started construction of 4 floors building in the month of November 2016 and sold 2 floors on 11.1.2018. Please clarify how to calculate the capital gain tax (LTCG or STCG) ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 October 2018 while selling the floors, have you transferred part rights in land also?

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K.V.Ramana Murthy

K.V.Ramana Murthy (Querist)
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07 October 2018 yes undivided extent of land transferred 66.66 sq. yards for each floor

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 October 2018 then the capital receipt to the extent attributable to land should be taxed as LTCG and the floor as STCG.

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K.V.Ramana Murthy

K.V.Ramana Murthy (Querist)
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07 October 2018 Thank you sir.
Whether I can avail exemption on investment of new house property if I declare land portion in LTCG since I have sold the land as undevided extent with house.
What will be the date of acquisition for STCG. Completion of constrution certificate issued by the project engineer is sufficient ?