Capital gain tax on the sale of a residential flat
This query is : Resolved
05 December 2008
Hello,
I bought a flat in Dec 2005 which was registered in Apr 2006. I got the possession of the flat in Aug 2008.
I want to sell this flat now. From which date the computation of capital gain tax will be done? Would it be from
a) Dec 2005 i.e. the month that I bought the flat in
b) Apr 2006 i.e. the month that I got the flat registered in
c) Aug 2008 i.e. the month that I got the possession of the flat in
Thank you for your replies.
I bought a flat in Dec 2005 which was registered in Apr 2006. I got the possession of the flat in Aug 2008.
I want to sell this flat now. From which date the computation of capital gain tax will be done? Would it be from
a) Dec 2005 i.e. the month that I bought the flat in
b) Apr 2006 i.e. the month that I got the flat registered in
c) Aug 2008 i.e. the month that I got the possession of the flat in
Thank you for your replies.
05 December 2008
April 2006 will be counted for computing capital gain tax.
05 December 2008
Let us keep aside disposal aspect of flat for some time.
You got possession of flat in Aug 08. As I understand this has to be taken as date of completion. In other words, you have to treat the flat as self occupied or let out with effect from Aug 08 only and return the income from house property from FY 2008-09 or AY 2009-10.
Registration of flat in your name in Apr 2006 is immaterial for returning income
Asset has come into existence for use from Aug 08 and not earlier
It therefore appears to me that Aug 08 has to be reckoned for all purposes not excluding Capital Gains
Besides tax aspect, now real estate market is very unfavourable for sellers; you may therefore better wait for some time, if you really intend to dispose off
You got possession of flat in Aug 08. As I understand this has to be taken as date of completion. In other words, you have to treat the flat as self occupied or let out with effect from Aug 08 only and return the income from house property from FY 2008-09 or AY 2009-10.
Registration of flat in your name in Apr 2006 is immaterial for returning income
Asset has come into existence for use from Aug 08 and not earlier
It therefore appears to me that Aug 08 has to be reckoned for all purposes not excluding Capital Gains
Besides tax aspect, now real estate market is very unfavourable for sellers; you may therefore better wait for some time, if you really intend to dispose off
07 December 2008
Thank you very much Mr. Jitender and Mr. K V Subba Rao for your replies.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Applicability of Ind As to associate of associate
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- RCM INVOICING FROM NOV-2024
- GST Regis.
- Disallowance of Section 43B(h) to sez units
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- GSTR9 applicability
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
