27 April 2011
Hi I filled DDA form and luckily got one flat allotted from DDA.my question is if I sell the Allotment letter on premium to property dealer what are the tax implications.Do I need to pay short term capital gain tax or any other tax on the premium amount which i will receive.
Please suggest.
Also if sale proceeds are reinvested in another resedential property will there be any exemptions from capital gain tax.
27 April 2011
The property was never owned by you. Only the allotment is sold. Therefore, there is no capital gains. It will be Income from Other Source.
As there is no capital gain investment in any other property will make no difference.
CAclubindia
