I am facing the problem while computing the capital gain on house property.
PROBLEM
My client purchased house on 10 yearly installments. He took possesion in year of down payment. In current year he sold it. Now calculating the capital gain, indexation of which year be used i.e., wether i have to used index on each installment of same year.or used the index of year of down payment.
Example
Down Payment: 10,00,000 in FY 90-91
Ist Installment: 10,00,000 in FY 91-92
IIst Installment: 10,00,000 in FY 92-93
IIIst Installment: 10,00,000 in FY 93-94
IVst Installment: 10,00,000 in FY 94-95
Vst Installment: 10,00,000 in FY 95-96
Sale consideration : Rs. 2,00,00,000 in FY 2008-09
14 March 2009
Hello..........actually i tell what is my case exactally:
My client purchased the house from DDA under DDA's SFS (self financing scheme). In such scheme, every applicant has to give some money in beginning and DDA used such money in construction of house and whenever DDA needs fund for the preparation of house, they demanded from applicant. In my case, ,my client gives the DDA five installments from 1986 to 1990, and in 1991 , DDA give the houses to applicant. DDA also gave the allotment letter at a time of first payment i.e., in 1986. My client sold such house in April, 2008 Suggest me what should be computation for it.
CAclubindia
