Capital gain tax

This query is : Resolved

AK SIngh (Querist)
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27 December 2012 I booked a flat in 2007 for Rs 1150000/ and paid RS 400000/ in 2007-08
I paid Rs 750000/ IN 2008-09

I paid Rs 30000/ Maintenance per year there after up to mar 2011.

I sold flat in Dec 2012.

Query 1. While calculating index cost of flat the full cost (Rs 11.50 lacs) to be considered invested in 2007-08 and then indexation to be calculated or Only for indexation purpose investment to be considered as Rs 4 lacs for 2007-08 and 7.5 in 2008-09.

Query 2. Can Maintenance paid to society be considered as house maintenance and can be taken as cost of flat maintenance for capital gain purpose?

V K Bajaj

V K Bajaj (Expert)
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28 December 2012 Indexation: please calculate indexation value as as investment was done. In short calculate for the payment made in 2007 and then separate for payments in 2008-09. Add both these.

Maint. comes under expenses category and not as investment.

SANJAY TALATI

SANJAY TALATI (Expert)
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28 December 2012 In case of the transfer of the immovable property , the title to immovable assets will pass when the documents are registered.From your querry it is presumed that the sale deed has been excuted in the year 2007-08. Accordingly, the Cost of indexation will be computed from 2007-08 with the cost of acquisition of Rs. 11.50 lacs.

If the conveyance deed has been executed in the year 2008-09 i.e. when the full payment has been made , then the year of acquisition will be 2008-09 and the Full Cost of Acquisition will be Rs. 11.50 lacs.

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AK SIngh

AK SIngh (Querist)
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04 January 2013 Thanks Mr VK Bajaj and Mr Sanjay Talati. But Both view are confilicting, while Mr Bajaj is of the Opinion that Indexation is to be done as per investment and Mr Talati is of investment to be considered to have been done in the year of Registration.

Please advise me whose view I should consider while calculating my Capital gain tax. I request further deliberation and advise from some other expert.