Long term capital gains
This query is : Resolved
18 April 2017
1. For an apartment bought from a builder with payment in instalments, when does the apartment become a capital asset. I have been told it becomes one from the date of issue of the allotment letter by the builder, and the period for it to become a long term capital asset is calculated from this date.
Is this correct?
2. If so, how is the indexed cost calculated? The instalments are paid over a long period of time.
Please advise in detail
Thank you
R Chadha
Is this correct?
2. If so, how is the indexed cost calculated? The instalments are paid over a long period of time.
Please advise in detail
Thank you
R Chadha
18 April 2017
Normally when an apartment is booked with a builder, then it remains as advance only till the property is fully constructed. Once it has been completed and is fit for possession then it becomes a capital asset. Before that it remains as advance.
You can show the period of holding from the date of allotment but this is debatable and subject to litigation.
You can show the period of holding from the date of allotment but this is debatable and subject to litigation.
18 April 2017
Thank you for the prompt reply. Are you aware of any CBDT circulars / directives on the subject?
R Chadha
R Chadha
19 April 2017
Yes it'scorrect to calculate from date of allotment. Does not matter for instalment payment index calculate from date of allotment.
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- TDS deduction (debit notes)
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- 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
- TDS on purchase of value vouchers for employees ?
- 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 ?
Trending Online Classes
CAclubindia
