Stcg on sale of property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2011 hi,
i had purchase a flat in Dec 2009 for a cost of 15,50,000 i paid almost a lakh for stamp duty registration over 15.5 lakh & 30,000 towards brokerage. I have bought the flat on loan and have been paying emi of 12250 per month. For some reason i'm planning to sell my flat. The price that i'm getting is between 28-29 lakh + i have to pay brokerage of 60000 + society transfer fee of 15000. To buy the flat i have borrowed 2 lakh from family which they paid by chq and i want to return by chq.Well my questions to experts is on what amount will i have to pay the short term capital gain tax, what are the deductions that i can claim ( like stamp duty, loan from family, brokerage etc). I'm currently a salaried person in 30% tax bracket. Thanks in advance.

CA Aditya Goel

CA Aditya Goel (Expert)
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02 August 2011 As its STCG so no indexation

COA shall be total cost u have paid for that flat including stamp duty, brokerage etc. (cost of flat as agreed and mentioned in the deed no matter whether paid by loans etc.)

u can claim brokerage of rs 60k & transfer fee or rs 15k as deduction as transfer expense

Sale consideration will be the total amount you receiving. as its immovable property sec 50 c also applicable. as per which if the sale consideration amount is less than the stamp duty valuation then stamp duty valuation shall be considered as sale consideration.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 August 2011 I totally agree with the expert and would further like to add here that

If you have claimed any amount as deduction towards the Repayment of Principal of housing loan U/s 80C, the same will be added back to your total income since you are selling the flat before 5 years.

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